Renn Universal Growth Investment Trust plc - in Members’ Voluntary Liquidation (the 'Company')

Renn Universal Growth Investment Trust plc

Renn Universal Growth Investment Trust plc - in Members’ Voluntary Liquidation (the ‘Company’) Joint Liquidators – John David Thomas Milsom and Allan Watson Graham.

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Joint Liquidators – John David Thomas Milsom and Allan Watson Graham

Written resolutions were passed by the members of the Company on 10 December 2014 placing the Company into Members’ Voluntary Liquidation and appointing John Milsom and Allan Graham as Joint Liquidators.

A first post liquidation distribution of 72.64 pence per share was declared and paid on 12 March 2015, when dividend cheques were sent to shareholders together with a letter detailing the progress of the liquidation.

As shareholders will be aware, the Company’s investment policy was amended in April 2013 in order to enable the managed wind down of its investment activities and following this, in March 2014, £12.95 million was returned to shareholders via a Tender Offer.

In order to ensure that the Company did not jeopardise its investment trust tax status the Board resolved to place the Company into Members’ Voluntary Liquidation and a resolution was proposed at the General Meeting (“GM”) held on 10 December 2014. This was passed, approving the liquidation of the Company and appointing the Joint Liquidators. The Company’s Stock Exchange listing was subsequently cancelled on 9 January 2015.

In the circular to shareholders of 14 November 2014 (“the Circular”) convening the GM, the Company’s directors anticipated that a first cash distribution would be made in early 2015 and that further distributions would be made following the realisation of the Company’s remaining investments.

Following the commencement of the liquidation the Joint Liquidators have worked with the Manager, RENN Capital Group Inc, in realising the residual portfolio and the following investments have been realised in full:

Company Name

Sector

Value (per circular) $000  Amount realised $000

Flamel Technologies Pharmaceuticals 8,496 12,383
Charles and Colvard Clothing and accessories 544 265
Tiger Media Advertising 419 541

 

The majority of the funds realised in the liquidation to date were distributed to shareholders on 12 March 2015.

The following investments remain to be realised:

Company Name

Sector

Value (per circular) $000

AnchorFree Wireless communication 27,613
Cover-All Technologies Information technology 8,703
Bovie Medical Healthcare services 5,760
iSatori Personal products 2,234
PetroHunter Energy Oil and gas exploration 57
Total   44,367

 

The remaining investments are relatively illiquid and may take some time to realise. A realisation plan has been agreed with the Manager which should see significant further realisations of the remaining investments by the autumn of this year. As mentioned in the Circular the Joint Liquidators may not be able to sell the Company’s holding in AnchorFree other than by way of a privately negotiated sale and this may take a considerable time to achieve.

At this point it is not possible to say more precisely when the remaining investments will be realised nor when the liquidation will be finally concluded. However, when further significant progress is made in realising the remaining portfolio the Joint Liquidators will be in a position to make further distributions to shareholders and they will write to shareholders at that point to provide an update on the progress of the liquidation.

For any queries please contact James Bryan by email at james.bryan2@kpmg.co.uk or by telephone on +44 20 7311 1711.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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