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Near bankrupt Worthington exposed again by the Arctic Journal - Greenland Comedy continues

By Tom Winnifrith, The Sheriff of AIM | Saturday 6 February 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


It is good to see that the comedy show at Worthington (WRN) continues and now that must read publication, The Arctic Journal is on the case, exposing the latest problems for this worthless company.

The Article reads: NunaMinerals - Payback’s a glitch

Despite a missing a deadline, a British investor still has Greenland’s confidence that it can bail out a bankrupt mining firm. For now Once all the formalities are done, Greenland Mining Management, a British-registered firm, will own nearly 90% of the shares of NunaMinerals, Greenland’s nationally controlled exploration firm that went belly up last year.

Getting those final details into place is taking longer than most had expected. Under the terms of a deal struck in November, GMM will be given control of the company once it makes a payment of 4.5 million kroner ($640,000), the amount of a loan made by Naalakkersuisut, the elected government, at the end of 2014 in one final effort to keep the firm afloat.

The deadline for repayment had been January 5, a date set by GMM itself. The deadline has now been pushed back to February 29, according to stock-market announcements filed by NunaMinerals at the end of January.

This is the sixth extension granted by the courts in Greenland since June 2015, when Naalakkersuisut gave up on NunaMinerals’ ability to repay the money on its own. This extension, however, is the first after the agreement with GMM.

Lawyers supervising the bankruptcy proceedings approved GMM’s request, but questioned why it was necessary, noting that they had agreed to the deal because it had been informed by the NunaMinerals management that GMM and its backers had the funds necessary to complete the takeover.

“The supervisors are therefore surprised to learn than the funding has been further delayed, considering in particular the relatively long suspension of payments period,” representatives from the two law firms wrote in their statement to the court.
Nevertheless, the supervisors said they accepted the extension, given that the new management appeared to believe that funding was likely to be provided, and that other investors involved with the deal had accepted the delay.

It may have also been an acceptance that there was little other choice but to continue with GMM. The missed deadline has raised eyebrows in the the Self-Rule Authority, given that the company itself had set the date, but for now, officials say sticking with the company is the best, if not its only, option.

“The Self-Rule Authority could have chosen to say that we’re not going to wait for the money any longer. That’s not in our best interest though. We have everything to win,” Søren Hald Møller, a spokesperson for the Premier’s Office, told KNR, a broadcaster.
Once the NunaMinerals deal is in place, the next step, according to Patrick Newman, a British entrepreneur who has been involved with over 40 failed businesses, will be to use the firm to purchase Worthington Group, a British firm that describes itself as “an emerging conglomerate which upon completion of its current acquisition programme will have diverse interests in mining, energy, property, litigation, technology, media and entertainment”.

Mr Newman is a minority owner of Worthington Group. On January 8, in connection with the request for the extension, the firm stated it accepted that there was now a chance no buyout offer would be made.

Winding NunaMinerals down may involve more than formalities.

Ends.

Question 1 - why does Worthington just not buy Nuna possibly via an all-share RTO? Surely the great conglomerate could find the $640,000 needed to seal the deal? er....
No. Worthington has no cash, can't file its accounts to Sept 2014, its operations are a joke, its driving force (Mr Craig Whyte) is er...distracted by certain events underway in Scotland, and the SFO is all over it. 

As for the chocoloate teapots round at the LSE why do they not chuck Worthington off the standard list for not filing accounts and for pretending that it is in merger talks with Nuna. It is quite clear from this article that Nuna cannot buy anything. Only if M<r Newman finds cash and GMM buys Nuna can GMM then buy Worthington. Worthington has told the LSE a different tale but what is the problem with another lie between friends.

What is the Danish for "wake up and smell the coffee?" Wakey, wakey Greenland Government the joke is over.

You can read the Arctic Journal article HERE


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More on WRN


Comments

8 comments

  1. You should see some of the comments on the LSE discussion boards regarding Worthington. Some posters seem to think they have institutional investors lining up to invest in the fledgling conglomerate despite the fact the share has only been trading for 6 weeks in the past 3 years.

    They also conveniently ignore the fact that it’s Whyte and Earley who are running the show despite all the evidence showing that is the case.


  2. Worthingtonian

    Makes interesting reading in relation to the mythical ‘media assets’.

    http://shestarted.com/2016/01/23/why-im-stepping-down/

  3. Greenlandic Broadcasting Corporation KNR Says GMM Having Money Problems and Asset Stripping Fraud Suspicion.

    (LOCALS SAYING GMM GONE KONKURS LIKE ALL THE OTHER PATRICK NEWMAN DISASTERS!!!!!)

    https://nunaminerals.wordpress.com/greenlandic-broadcasting-corporation-knr-says-gmm-having-money-problems-and-asset-stripping-fraud-suspicion/

    http://knr.gl/da/nyheder/selvstyret-gmm-skylder-os-45-mio-kroner

    Politics · Business ·3rd February 2016 · 15:04 of Charlotte Holten-Møller

    Self-directed: GMM owes us 4.5 million. crowns

    Greenland has yet to see the shadow of the 4.5 million that the British mining company GMM owe them.

    It confirms Permanent Secretary in Naalakkaersuisut President’s department, Søren Hald Møller:

    – No, we have not yet.

    The period far exceeded

    The PA has not only a loan of 4.5 million to NunaMinerals out swimming after last year the company went into receivership. But the interest earned.

    But according to a restructuring plan, which lays down the conditions under which, Greenland Mining Management, GMM will take over NunaMinerals has GMM promised to pay the 4.5 million back to the PA by 5 January 2016.

    But the problem apparently so much for the British mining company to raise the money and get financieringen in place, the Court of Greenland preliminary six times has granted a request by NunaMinerals to delay the suspension of payments in an attempt to gain time and avoid bankruptcy. And it has the right to reject it. The deadline is now postponed to 29 February 2016th

    Dramatic situation

    The lack of funding has also been law firms and Malling Hansen Damm and Kromann Reumert, who oversees the cessation of payments to use a language that signals strong wonder at what is going on.

    Thus will the FSA “spectacular, that there has been a further delay in financieringen”, says the FSA’s latest Vendor Information.

    Also Self-Government Chairman Permanent Secretary wonder:

    – It is somewhat unusual that the deadlines GMM have helped to put not respected, says Permanent Secretary, Søren Hald Møller.

    – We from the PA side could choose to say that now we will not wait more on the money. It seems we just have no interest in. We have everything to gain. And as long as the Court of Greenland believes that there are grounds for ever to explore the possibility of implementing the agreement, so we are waiting to see what happens, says Permanent Secretary, Søren Hald Møller KNR.

    Not only the PA is waiting for its 4.5 million crowns plus interest. So does a strip creditors, which has also been promised that GMM will regularly pay their debts of around 40 million in NunaMinerals back.

    comments

    4 kommentarer

    Henrik Lund-Andersen “The heavily hyped mastermind Patrick Newman has, according to the British web media “Compagnie egde” – which records international companies history – a list of no less than 47 companies that have gone konkurs. Flere with two-digit million owed to creditors.
    Nuna Minerals are all come from the frying pan into the fire and you have to ask former directors / owners which references the new owner has been able to show to qualify as a buyer. It reminds most of all Ebberød Bank.”

    Ole Sørensen “What GMM?”

    Ole Sørensen “Hi Henrik, I have also tried to get capital prospectus for Greenland Mining and Minerals. It is a private company where you can not download the company reports. Perhaps Greenland must check a little more up on him before leaving the Royal Ministry.”

    Henrik Lund-Andersen “Yes, but unfortunately it seems that both the original owners and management have thrown in the towel without making just a reasonable process over whom they leave the company.”

    The possibility also exists that there is a real asset stripping which one or more of the departed / current management uses the completely atypical lengthy bankruptcy to transfer the values of the company and in their own pockets. Debts and obligations are in this case left to society investigation.”

    Ole Sørensen “Henrik Lund-Andersen But Henrik is not the enforcement court is administrator in a payment quenching and possibly the reconstruction? There are well appointed a bankruptcy administrator?”

    Henrik Lund-Andersen “Ole Sørensen – Lawyers Malling / Hansen Damm and Kromann Reumert is supervised cessation of payments. The company is well known not yet in bankruptcy.

    Usually it is the creditors’ interests supervision to protect and in this case, mainly the PA. It is therefore incomprehensible that the PA does not represent their interests but leaves the notorious bankruptcy rider Paul Newmann wheeling and dealing with the company. Just to agreements – settling NM’s debt to the PA – not complied should get the government to put the brakes on.

    Is there leading politicians and other bigwigs who have hidden interests in the company’s values – which may not tolerate the light of day?

    Yours sincerely”

    Ole Sørensen “er det samme artilel som jeg lige har læst: http://arcticjournal.com/oil…/2124/paybacks-glitch…

  4. The Arctic Journal yesterday suggested that the money to follow through with the NunaMinerals acquisition (by the £1 company Greenland Mining Management Ltd) had not appeared by the deadline date of 29 February.

    They write “The deadline has already been extended multiple times, but the payment, according to Patrick Newman (in grey suit, above), the managing director, will show up “within the next day or two”.

    Money showing up – is that the journalist’s put down or the reality of the vagueness of this whole debacle?

    But with no other options, will the Greenland court allow further, further time?

    http://arcticjournal.com/oil-minerals/2184/worth-wait-gold

    The photo suggests that the Newman and (?) Biggar camp (the lefts) are more worried than the rights.


  5. Worthington Wonderer

    http://thearcticjournal.com/opinion/2188/which-way-future

    Not even the former CEO of Nuna sees any hope for the business …

    “According to geologist Ole Christiansen, the former managing director of NunaMinerals, Greenland is still not a competitive mining country and missed its chance to capitalise when prices on minerals were good a few years ago.”

    A representative from the Danish business community, Torben Möger Pedersen, the managing director of PensionDanmark, characterised the nascent mineral sector in Greenland as a risky investment, and advocated for minimising what he called “political risk”.

  6. Some backdated Nunaminerals creditors announcements just out – including a revelation that the court appointed supervisors were just two days away from resigning on April 5 as Craig Whyte / Aiden Earley / Doug Ware / Bullshit Biggar / Worthington Group PLC couldn’t raise £20k in the space of a month:

    “March 9, 2016 attorney Ulrik Holsted-Sandgreen informed that an amount of DKK 200,000
    would be transferred as additional security for the supervisors’ fee. However, this transfer
    has still not been made and the investors have now been granted a final deadline to transfer
    the amount to the supervisors.

    If the agreed transfer has not been made by Thursday, 7 April 2016 at noon, the supervisors
    intend to resign”.

    http://www.globenewswire.com/news-release/2016/04/27/833332/0/en/NunaMinerals-A-S-under-suspension-of-payments-Letter-No-9-to-the-Creditors.html

  7. Almost there? Letter no 10 to the Creditors, relating to the umpteenth extension on 25 April 2016, makes interesting reading.

    It appears that the new London lawyers (LSGA) now acting for the “investors” are stated to be holding £588k, the investors themselves, £160k and the former lawyers £75k. It concludes that they are now just £200k short of having the funds to proceed with the “plan”. The supervisors also remark on lack of documentation relating to the funding.

    https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=708593&lang=en
    (click on the pdf download at the foot of the page)

    Whether the WRN shareholders will ever see any benefit from this saga is still to be seen – it is certain that many lawyers have been paid for their efforts.

    And if I understand the “plan” even slightly correctly, there will be big bucks required to prepare prospectuses and carry out the formalities of listing and RTO of WRN

  8. Even if the Nuna deal goes ahead, why would they purchase WRN which has a £5 million hole in its pension fund and no accounts produced since 2014 for £25 million quid or over?

    In the last 29 months, WRN has traded for 2 months only. That is all. Or you want to get really detailed, 30 trading days in 29 months. Those 3 facts alone, should make anyone with any sense know this won’t end nicely for WRN shareholders. This will get delisted, investors will get strung along for another year or so, deals to come etc etc then Law Financial will get siphoned off on the 1000/1 chance they get a case outcome and they will attempt to pin the entire blame on Tom Winnifrith.


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