Liquidator Asher Miller of David Rubin & Partners has written a report to creditors saying Colarb’s balance sheet cites assets of £39.7 million, of which Prince had said £27.7 million could be realised. However, the report says Prince’s figure appeared to be “overstated by £20 million or more” based on earlier documents signed by Prince and MJS’s two biggest portfolio companies.
The biggest alleged overstatement was in the case of money invested with a Dubai firm called Angel World, where the £26 million valuation on the Colarb balance sheet was written as being worth only £5.3 million.
CEO Shaun Prince blames the discrepancy on MJS Capital being put into liquidation, as a result of being unable to pay its debts to bondholders.
What the liquidation has to do with the discrepancy is unclear. Any administrator would have been free to let MJS Capital’s investments run their course if there was a realistic chance of getting a 400% return as a result.Prince has previously told the Evening Standard that MJS Capital took in c. £30 million from investors.
The administrators’ report is not yet on Companies House but we’ll bring you more when we have sight of it.