NOTICE TO SHAREHOLDERS
1 August 2024
Further to the Joint Liquidators’ update on 20 June 2024, the Company has received an updated rectification certificate from the Indian revenue authorities which has reduced the liability in the tax assessment from c.£0.4m to £0.2m. The Company’s tax advisors have confirmed that the ongoing liability arises from an error by the Indian tax authorities to take account of tax already paid by the Company as noted in the Company’s original tax returns and its subsequent appeal. Unfortunately, due to the size of the potential liability under the current tax assessment and the risk that a further revised assessment could be received at a higher amount, the Joint Liquidators require confirmation that the matter has been resolved before they can distribute the residual funds in the liquidation estate to shareholders.
The Joint Liquidators continue to work with the Company’s tax advisors to resolve this matter. Further appeal documentation, confirming the Company’s position that no tax liability should be payable, has been prepared and submitted to the Indian tax authorities and the Company’s tax advisors will seek to engage with representatives of the Indian authorities to address any ongoing questions in respect of the appeal.
Prior to making a final distribution to shareholders, the Joint Liquidators are obliged under the UK Insolvency legislation to have either discharged all known and potential liabilities in full or retain sufficient funds to pay such liabilities. As the Joint Liquidators are unable to confirm the validity or quantum of any potential liability with the Indian tax authorities until the appeal has been processed, the Joint Liquidators are of the opinion that it would be in the shareholders’ best interests to delay the distribution until the matter is resolved. The alternative of making a further interim distribution and retaining a balance of funds while the Indian tax position is resolved would incur additional costs in the liquidation in paying a further, final distribution of a nominal value to shareholders.
The Joint Liquidators cannot provide a definitive timeline for resolution at this point but their current expectation is that they should be in a position to make the final distribution before the anniversary of the liquidation on 11 November 2024 and will notify shareholders if there is any update before this date through a further update on this website.
If the Indian tax authorities confirm that no tax liability is payable, then it is expected that the final distribution will be in the region of 15 pence per Ordinary Share, taking distributions from the liquidation to approximately £12.85 per Ordinary Share.
Any queries relating to this update may be sent to the Joint Liquidators through Rhiannon Leighton at EY using the details below.
rhiannon.leighton@parthenon.ey.com
0131 460 2310
Any queries relating to shareholder entitlements or payments relating to the first and second distributions should be made to the Company’s registrar, Link Asset Services, using the details below.
Link Asset Services
0871 664 0300
shareholderenquiries@linkgroup.co.uk
NOTICE TO SHAREHOLDERS
20 June 2024
Further to the Joint Liquidators’ update on 3 May 2024, unfortunately, despite ongoing discussions with the Company’s tax advisors to try and accelerate resolution of this matter, the Company is still awaiting receipt of a rectification certificate from the Indian revenue authorities. Due to the size of the potential liability in the tax assessment received by the Company (c£0.4m), the Joint Liquidators require confirmation that the matter has been resolved before they can distribute the residual funds in the liquidation estate to shareholders.
The Joint Liquidators continue to liaise with the Company’s tax advisors and are considering alternative options to bring this matter to a conclusion as soon as practicable. However, in the circumstances, the Joint Liquidators anticipate that the final distribution to shareholders should take place on or around 30 August 2024, subject to there being no new information being received from the Indian tax authorities in that time that would prevent the distribution being made.
A further update on the time of the third distribution will be provided by 31 July 2024.
NOTICE TO SHAREHOLDERS
3 May 2024
Further to the Joint Liquidator’s update on 22 March 2024, the Company’s tax advisors have met with the Indian revenue authority in respect of the appeal against the assessment of liability due from the Company and the Joint Liquidators understand that it is expected that the assessment will be removed. However, to date, a rectification certificate from the Indian revenue authority has not been received and the Joint Liquidators continue to work with the Company’s tax advisors to resolve this position as soon as practicable in order to be able to declare the final distribution to shareholders.
Assuming that the rectification certificate is received from the Indian revenue authorities by 31 May 2024, the Joint Liquidators anticipate that the final distribution can be paid by 30 June 2024.
A further update on the time of the third distribution will be provided on or around 31 May 2024. Should the Joint Liquidators be in a position to confirm the timing and quantum of the third distribution before this date, an update will be posted at that time.
NOTICE TO SHAREHOLDERS
22 March 2024
As detailed in the Joint Liquidators’ annual progress report, the timing of the third and final distribution to shareholders and the conclusion of the liquidation is largely dependent on resolution of the Company’s tax affairs in India, where the revenue authority have raised an assessment into the Company’s tax filing for the year ended 31 March 2023. The Joint Liquidators have filed an appeal against the assessment on behalf of the Company and the Company’s tax advisors are liaising with the Indian revenue authority to attempt to resolve the matter as soon as possible.
It was anticipated that the third distribution to shareholders could be made by 30 April 2024. Unfortunately, due to the ongoing Indian tax assessment, it will now not be possible to make payment of the third distribution by 30 April 2024. The Joint Liquidators and the Company’s tax advisors will continue to try and resolve this matter expeditiously and, assuming that the appeal is accepted by the revenue authorities by 30 April 2024, anticipate that the final distribution can be paid by 31 May 2024.
A further update on the time of the third distribution will be provided on or around 30 April 2024.
NOTICE TO SHAREHOLDERS
9 January 2024
Further to the appointment of Richard Barker and Derek Hyslop as Joint Liquidators of the Company on 11 November 2022 and in accordance with the circular issued to shareholders on 11 October 2022 (the "Circular"), shareholders will be aware the Joint Liquidators declared the Initial Distribution (as defined in the Circular) at a rate of £12.40 per Ordinary Share, which was paid on 16 December 2022. The Joint Liquidators also declared a Second Distribution (as defined in the Circular) at a rate of £0.30 per Ordinary Share, which was paid on 23 August 2023.
The Joint Liquidators’ annual progress report for the period 11 November 2022 to 10 November 2023 was published on this website on 9 January 2023. The report provides shareholders with an explanation of the progress made during the liquidation and distributions to shareholders, including an update on the third and final distribution as noted below.
A third and final distribution will be paid to shareholders at the conclusion of the liquidation. Although the timing of the final distribution to shareholders and the conclusion of the liquidation is largely dependent on resolution of the Company’s tax affairs in India and HMRC acknowledging the Company’s final tax position, it is anticipated that the third and final distribution to shareholders will be made by 30 April 2024. To the extent that there is any delay to this timetable, an update to shareholders will be provided on this website as soon as reasonably practicable.
The precise amount and timing of the third and final distribution cannot be determined at this point as it is dependent on finalisation of the Company’s tax affairs in various jurisdictions. However, at this stage, as an indicative guide only, it is anticipated that the final cash distribution to shareholders may be in the region of 15 pence per Ordinary Share, taking total distributions from the liquidation to approximately £12.85 per ordinary share.
The final published NAV, as at close of business on 10 November 2022, was £13.03 per Ordinary Share. The difference between the final NAV and the estimated total distributions to shareholders from the liquidation is attributed to the impact of weaking of the underlying currencies of the Company’s investments against Pound Sterling in the Portfolio realisation period.
Shareholders should refer to Part II of the Circular which sets out a general guide to certain aspects of current UK taxation law and HMRC published practice which may be relevant to receipt of the Initial Distribution, the Second Distribution and the final distribution. If a Shareholder is in any doubt as to their individual tax position, it is recommended that they seek advice from an independent professional advisor.
Following the commencement of the members' voluntary liquidation, shareholders are no longer able to trade in the Company's shares on the London Stock Exchange. The Company will not publish any further regulatory information service announcements and will not produce further financial statements (other than those prepared by the Joint Liquidators and communicated to shareholders under the relevant provisions of the Insolvency Act 1986). Shareholders with questions, including regarding the receipt of their entitlements in respect of the first and second distributions, should contact the Company’s Registrar, Link Asset Services, using the details below.
Link Asset Services
0871 664 0300
shareholderenquiries@linkgroup.co.uk
NOTICE TO SHAREHOLDERS
11 August 2023
Further to the appointment of Richard Barker and Derek Hyslop as Joint Liquidators of the Company on 11 November 2022 and in accordance with the circular issued to shareholders on 11 October 2022 (the "Circular"), shareholders will be aware the Joint Liquidators declared the Initial Distribution (as defined in the circular) at a rate of £12.40 per Ordinary Share, which was paid on 16 December 2022.
The Joint Liquidators are now in a position to confirm that a Second Distribution (as defined in the circular) at a rate of £0.30 per Ordinary Share will be paid on 23 August 2023.
Shareholders will receive their distribution by cheque and those cheques will be issued by the Company's Registrar (Link Asset Services) to the address on the share register as at the Record Date.
Shareholders should refer to Part II of the Circular which sets out a general guide to certain aspects of current UK taxation law and HMRC published practice which may be relevant to receipt of the Initial Distribution and the Second Distribution. If a Shareholder is in any doubt as to their individual tax position, it is recommended that they seek advice from an independent professional advisor.
A third and final distribution will be paid to shareholders at the conclusion of the liquidation. The precise amount and timing of the third and final distribution cannot be determined at this point as it is dependent on finalisation of the Company’s tax affairs in various overseas jurisdictions, but the Joint Liquidators consider that this could be within next 6 months. An update to shareholders will be provided on this website as soon as reasonably practicable and further information in respect of timing and amount of the final distribution will be included within the Joint Liquidators’ progress report to shareholders which will be issued to shareholders within 2 months of the anniversary of the liquidation on 11 November 2023.
Following the commencement of the members' voluntary liquidation, shareholders are no longer able to trade in the Company's shares on the London Stock Exchange. The Company will not publish any further regulatory information service announcements and will not produce further financial statements (other than those prepared by the Joint Liquidators and communicated to shareholders under the relevant provisions of the Insolvency Act 1986).
Shareholders with questions, including regarding the receipt of their entitlements in respect of the first and second distributions, should contact the Company’s Registrar, Link Asset Services, using the details below.
Link Asset Services
0871 664 0300
shareholderenquiries@linkgroup.co.uk