I am writing to let you know that today’s court hearing was adjourned for 7 days. This is to allow us time to show evidence to the judge that we have many investors who oppose the bankruptcy. This email has only gone to the people who we believe oppose the bankruptcy.
We will be calling each of you next week so that you understand exactly the situation which I will outline below in bullet points.
1. For those intent on pursuing criminal allegations an IVA will not protect us from that. You can continue to do this for as long as you wish.
[expert]: That is correct although they won’t have the benefit of a trustee’s investigative powers to assist.
2. Bankruptcy will lead to all Mortgage Express going to LPA receivers. A trustee will NOT be appointed for the estate as MX do not allow it.
[expert]: This is highly likely, although I am not sure what equity there is to protect.
3. Properties are the only assets C&B own
4. Properties will be rented out and all income will go to MX NOT to creditors.
[expert]: This will cover mortgage costs and LPA costs so no detriment to the creditors as this will happen in both scenario’s (IVA or bankruptcy).
5. Those properties which lose tenants as a result of change of management will be boarded up, NOT advertised.
[expert]: Who knows!
6. We do not have money in off shore accounts which will be found and split between investor
7. We do not have anything which can be sold to generate income for investors.
8. Under new bankruptcy laws as of January last year I will be permitted to live in my own personal property as will David if he is made bankrupt and a charge will be placed over the asset equivalent to the equity.
[expert]: They have occupational rights for a year, then creditors interests prevail.
9. At present when you take into consideration restrictions and interest in my own home it has no equity at all even when taking valuations from 3 online comparable sites and a RICS survey.
10. In bankruptcy I will lose all debt to my name, I will be allowed to keep my home and live in it. I will lose houses which are not going to have any equity for at least 3-5 years and rental income is only now starting to pick up. I have made no money from our assets for over 3 years so I will not miss any rental income.
11. In bankruptcy the receivers will offer a third party of ours choice to buy the assets out for a small fee meaning someone unrelated to me would be able to buy them for a tiny amount and could then gift them back to me at a later day. YES WE DO HAVE MANY CLEVER WAYS WE COULD KEEP THESE ASSETS AND INCOME FOR OURSELVES!
[expert]: Any trustee has an obligation to obtain the best price for his equitable interest. This can be from any third party and is NOT the choice of the bankrupt.
It is time for you all to realise, there has never been bad intent only incompetence and as I say if you wish to pursue criminal allegations you are within your rights to do so. THE IVA IS FOR YOU ALL NOT FOR US! YOU CANNOT PUNISH US BY BANKRUPTING US. It is crazy to think you can when you look at the above points but you can punish 130 investors who have hard earned cash like yourselves tied up in this and all like yourselves would like to see some or all of this returned.
I am not unrealistic to think that we will be able to pay 100p in the pound over 5 years but we are offering that. What we are saying is this. The houses are yours, you and MX have the rental income then in 5 years sell them and whatever materialised you keep between yourselves. Or you could take the emotional irrational Ewart Tempest Georges route, bankrupt us, get nothing wipe the slate. And then what........
Please let me know if bankruptcy is the absolute route you are supporting as there is little point in being covert I will find out in 7 days anyway but at least this way we can gauge whether we have a chance. Remember even if we achieve a 75% vote we still have to get MX to agree with this which is still unlikely but we have to try. IF MX say no, we are bankrupt anyway.