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Chrysalis VCT: liquidation

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
wilwak9
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Re: Chrysalis VCT: liquidation

#475942

Postby wilwak9 » January 25th, 2022, 10:25 am

Getting it all wrapped up and 45p+ cash to shareholders within 3-6 months is certainly what I’ll be hoping for.

There’s a few promising signs but Coolabi is worrying. Should have completed last July.

They have £5m it seems but not sure if they’d be allowed to distribute the £2.5m advance payment? Depends on the terms.

Not sure why they still hold Impact REIT as that’s a listed share unless it has a lock-in period or is a loan?

wilwak9
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Re: Chrysalis VCT: liquidation

#492099

Postby wilwak9 » April 6th, 2022, 10:10 am

All is very quiet…. Too quiet.

It seems that Coolabi hasn’t completed or surely we’d have heard something by now.

Is anyone actually actively working on the liquidation I wonder?

I really don’t think that keeping shareholders informed is being taken seriously and wonder if we need shareholder representation on the board?

A quarterly update isn’t too much to ask… is it?

scotia
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Re: Chrysalis VCT: liquidation

#492146

Postby scotia » April 6th, 2022, 12:07 pm

wilwak9 wrote:All is very quiet…. Too quiet.

I was thinking exactly the same. I had another look at the liquidator's report of 20th January 2022, which was on the Downing site
https://www.downing.co.uk/existing-investor/chrysalis-vct
And I found the following statement
1. Future documentation will be made available for viewing and downloading at
http://www.antonybatty.net/client-login.php using 558355699, without further notice to creditors.

I thought I possibly had missed something that had been placed on this site, but when I looked there seemed to be no update further to the 20th January 2022 report.
But it looks like I'll need to keep a lookout on that site for further info.

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Re: Chrysalis VCT: liquidation

#492150

Postby BusyBumbleBee » April 6th, 2022, 12:24 pm

You make some very good points, wilwak9. Seems that the problem is with the liquidator not with the board but I for one feel let down by the board who obviously had a rosier view of what the liquidator was going to do and the timescales.

There are other instances of poor performance by a liquidator and one in particular where the board told shareholders they had sold everything before the liquidator was appointed and implied the release of all the proceeds before end February (see viewtopic.php?p=468287#p468287)

Trouble is that we could have put that money to good use in the generally rising market

There needs to be some mandatory health (and wealth) warnings from the board about the efficiency or otherwise of the liquidator they are effectively appointing, in which they clarify to investors what they expect to happen.

There is simply no accountability at the moment.

wilwak9
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Re: Chrysalis VCT: liquidation

#492179

Postby wilwak9 » April 6th, 2022, 2:06 pm

It’s all a bit of a blur now but am I right in thinking that they have £2.5m in cash for a sale post the liquidators last report? Plus they have E700k in Impact REIT which is listed and freely tradable.

So even if there’s been no other sales yet that’s over 10p per share that could be distributed.

Just an update would be nice. It doesn’t take much to just let us know know what’s going on. It’s now nine months since Coolabi was supposed to complete.

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Re: Chrysalis VCT: liquidation

#492640

Postby Kidman » April 7th, 2022, 9:39 pm

I don't think the liquidator is to blame for either the lack of action or the lack of communications.

The company is in liquidation so does not have a board of directors any longer. However, you may recall that the General Meeting resolutions to approve the liquidation appointed a previous director and the previous investment manager (Martin Knight and Chris Kay) to manage the liquidation for the liquidators at a nice fee for themselves (annual fees plus cut of proceeds).

I recall voting against this aspect of the liquidation as it seemed they were just feathering their own nest and not caring about shareholders. To be fair, I think they increase their own payout the sooner they complete the sale of all the assets but in the end I think it is down to those individuals to get on with the process and not the liquidators in this particular case.

The liquidators have no legal requirement to report to us more frequently than annually. If however the liquidation is terminated or they make another interim payout then we will hear from them sooner than waiting a year.

wilwak9
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Re: Chrysalis VCT: liquidation

#492657

Postby wilwak9 » April 7th, 2022, 11:10 pm

I’m hoping that the next announcement tells us that all the assets have been sold and we’re getting the final payment.

They clearly have 10p+ already available for a payment so hopefully are holding off as other sales are due very soon.

From 20th January report…

“ Although we cannot provide a clear estimate of the timing of these exits at this time, the Investment Manager and Supervisory Committee report that transactions are being progressed that could lead to exits from all investments in the next 3-6 months. If these transactions do not make satisfactory progress, alternative exit plans may be sought, which could extend the time to completion.”

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Re: Chrysalis VCT: liquidation

#492722

Postby Kidman » April 8th, 2022, 10:01 am

I hope Wilwak9 that you are correct and I think that is the most likely outcome. However there is the matter of timing.

I note from your quote "could lead to exits from all investments in the next 3-6 months" and then the caveat that there may need to be alternative solutions. After all the exits the liquidators have to agree the accounts with HMRC, effect the necessary formalities with Companies House and get our money sent out.

I'm not holding my breath!

As to the 10p they are holding it is being used in ongoing costs for the advisers and liquidators and I see it as unlikely that it will be sent as an interim payment, in order to save costs.

I will be happy if it is all finished by the end of this calendar year.

wilwak9
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Re: Chrysalis VCT: liquidation

#492744

Postby wilwak9 » April 8th, 2022, 11:05 am

Kidman… I think that being realistic you’re absolutely right that by the end of this year would be a good result.

Wind-ups are certainly a slow and uncertain process as I’m also learning with SLFR.

Fingers crossed the 3-6 months on Chrysalis proves to be an accurate estimate. Hoping!

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Re: Chrysalis VCT: liquidation

#493956

Postby Kidman » April 13th, 2022, 10:55 am

Coolabi Group filed a confirmation statement dated 17 March 2022 with Companies House and among the 119 shareholdings listed there is still:-

Shareholding 2: 7589243 INVESTOR ORDINARY shares held as at the date of this confirmation statement
Name: EDGE PERFORMANCE VCT PLC
Shareholding 3: 10461095 PREFERENCE shares held as at the date of this confirmation statement
Name: EDGE PERFORMANCE VCT PLC
and
Shareholding 24: 216318 INVESTOR ORDINARY shares held as at the date of this confirmation statement
Name: CHRYSALIS VCT PLC.

It appears that there has been no big sale/transfer of shares although Quest Digital Ltd, who own two deferred shares have been listed "as a person with significant control".

Whatever deal is being done must have enough complications to keep this dragging on and on so we Chrysalis shareholders must live in hope that it will be sorted out soon.

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Re: Chrysalis VCT: liquidation

#493964

Postby wilwak9 » April 13th, 2022, 11:27 am

Thanks for sharing that.

So it looks like Edge still haven’t completed either.

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Re: Chrysalis VCT: liquidation

#494016

Postby scotia » April 13th, 2022, 2:33 pm

wilwak9 wrote:Thanks for sharing that.

So it looks like Edge still haven’t completed either.

That's puzzling. The Edge half year report to 31/8/21, shows the Coolabi shares present at 28/2/21, but gone at 31/8/21, for both the H and I shares, qualifying and non-qualifying.

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Re: Chrysalis VCT: liquidation

#494031

Postby wilwak9 » April 13th, 2022, 3:33 pm

I thought Edge had paid a dividend based on the Coolabi exit??

Puzzling

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Re: Chrysalis VCT: liquidation

#494125

Postby Kidman » April 13th, 2022, 9:00 pm

My understanding is that Edge sold their shares to a third party. The fact that Edge remain on the shareholder list could mean that they are indeed the nominal owner of certain shares but they have sold the beneficial rights to them. This would be akin to a company selling its business rather than it being taken over.
Indeed it may be that Coolabi Group has sold its business but then they would have to distribute the proceeds by dividend, liquidation or some other means.
Sadly in the absence of hard facts, we can only speculate on the reasons for the delays. I could guess that Edge sold at a discount but at least they got cash. This story could run and run, but I hope not.

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Re: Chrysalis VCT: liquidation

#494611

Postby wilwak9 » April 16th, 2022, 7:49 am

Oh yes Kidman ….. good thinking.

They could have sold the trade and rights of Coolabi rather than the actual shares. That’s definitely a possible explanation for why the share register hasn’t changed. Let’s hope that’s the case and the deal is done. Fingers crossed.

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Re: Chrysalis VCT: liquidation

#498205

Postby Tei1 » May 3rd, 2022, 3:11 pm

Hi I’ve just found this site, I bought Chrysalis when the original VCT was launched in 2000 or 2001, called iNET VCT, if I read correctly I have to pay CCT on the sale price, however there was a change made and any VCT’s bought in (I think 2005) are not treated in the same way and not liable to tax, is anyone able to confirm this, thanks in advance for any replies!

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Re: Chrysalis VCT: liquidation

#498375

Postby Kidman » May 4th, 2022, 11:06 am

I don't think there has ever been CGT payable on the sale or wind-up of a VCT itself (except when buying more than £200k p.a. and making a capital gain).

However, until 5 April 2004 one could shelter any CGT due by buying a VCT and if that is what you are referring to then yes, the original gain will crystallise as the windup completes. This is known as VCT deferral relief.

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Re: Chrysalis VCT: liquidation

#498380

Postby BusyBumbleBee » May 4th, 2022, 11:32 am

Kidman is right. Unless you rolled over some capital gains on your original purchase you will not have to pay any CGT.

If however you do have to pay this tax it will be on the full sum you invested initially (less the annual CGT allowance) not on the sale price you get from the liquidators.

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Re: Chrysalis VCT: liquidation

#498427

Postby Tei1 » May 4th, 2022, 1:18 pm

Thank you both for your replies, most helpful.

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Re: Chrysalis VCT: liquidation

#502335

Postby yorkshirelad1 » May 23rd, 2022, 5:00 pm

Update from company dated 20 May 2022 https://www.downing.co.uk/assets/cysreport
distribution of 17.5p per share paid on 17 June 2022, and info re Coolabi.
(I am a Chrysalis VCT shareholder and had my update via e-mail this afternoon)


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