Oyster in liquidation

[kmacdonald]

Is there a criminal investigation underway or have there been criminal charges filed yet?

[kmacdonald]

I wouldn't think screwing a wealthy Russian businessman would be healthy.

[oldjags]

The fact that the financial backers pulled the plug with 80 million dollars worth of orders on the books hints that maybe something was not right with the financial statements and their accuracy. It's pure speculation, of course, but if so, it wouldn't be the first time investors or lenders have been served 'creative' financials.

Enron and HealthSouth and a number of other publicly-traded companies got caught doing it. There's no telling how many private companies have lost their lines of credit when the lenders find out things aren't as they were represented.

Maybe that $80 million worth of orders on the books wasn't all real?

[boatman61]

Never happen.. sold for £70,000,000 in '08.. sold again 2012 for £15,000,000 to current folks who are liquidising.
Only people who will lose are the workers and suppliers.

[surf_sail]

Originally Posted by oldjags

The fact that the financial backers pulled the plug with 80 million dollars worth of orders on the books hints that maybe something was not right with the financial statements and their accuracy. It's pure speculation, of course, but if so, it wouldn't be the first time investors or lenders have been served 'creative' financials.

Enron and HealthSouth and a number of other publicly-traded companies got caught doing it. There's no telling how many private companies have lost their lines of credit when the lenders find out things aren't as they were represented.

Maybe that $80 million worth of orders on the books wasn't all real?

Ugh I can't let this go...

Have you looked at the financial statements? If so, I suggest you look at the revenue and profits for all the past years, then maybe you'll understand why investors may decide to pull the plug even with a record order volume. A simply analysis the uber intelligent authors of oysterstory.info could have done before making baseless allegations.

[oldjags]

Of course, we are all speculating here. That's what's so fun about it. :-) The truth will come out, and some of us can say, "Hah" That's exactly what I thought!"

And then we can pat ourselves on the back for being so brilliant and insightful.

No one here is making any allegations. We're just trying to read between the lines.

I've worked at a struggling company, and lenders let you know that certain targets have to be met in order to keep the line of credit open. They also have to have confidence in the integrity of management. One misrepresentation, one fudged sales projection, and that can be the straw that breaks the camel's back. Once they lose confidence in the management team, they will cut their losses and bail out.

But of course, this is just speculation. I don't see any evidence that this has happened. just that it's possible.

[kmacdonald]

HOW IT WENT DOWN: The Oyster Story

I bet their financials were above board also.

[SnakeEyes]

I think everyone is missing the point.

Risk capitalists are never there for the long run. They are there to milk the profits and as soon it gets tough its easier to jump ship and offset the looses against other profits, and search for next investment. This is nothing new.

With a order book of 80 million pounds even if it comes at a loss, for a industrialist owner there are always options to save the company through good management and som tough years to come out on top with time, as long you have a good brand and customers lining upp for your products.

That kind of thinking is just not there if you are running a risk capitalist outfit.

[surf_sail]

Originally Posted by SnakeEyes

I think everyone is missing the point.



Risk capitalists are never there for the long run. They are there to milk the profits and as soon it gets tough its easier to jump ship and offset the looses against other profits, and search for next investment. This is nothing new.



With a order book of 80 million pounds even if it comes at a loss, for a industrialist owner there are always options to save the company through good management and som tough years to come out on top with time, as long you have a good brand and customers lining upp for your products.



That kind of thinking is just not there if you are running a risk capitalist outfit.

You're right "risk capitalists" in this case not a venture capital firm but a private PE shop that does NOT take other people's money love to lose their entire investment when the firm goes belly up (or maybe keel up)...

[Adrian Chen]

https://www.telegraph.co.uk/business...eneur-richard/