Administrator Leonard Curtis has completed its report and statement of proposals at in-administration Manchester vehicle data firm Wejo.
The report, dated Friday September 1 and seen by Prolific North, reveals a surplus debt of $104,541,134 currently in administration. The administrator added that Wejo could hold assets including $7.2m of intangible assets including patents, licences and trademarks, as well as almost $0.5m in tangible assets including computer equipment, and almost $15m in due debts “subject to floating charge.”
Key debtors include security agents Glas and Securis. Glas is owed $15.5m, mostly consisting of a $10m loan from shareholder GM and associated costs.
Securis is owed $39m in the form of a security agreement dated December 8, 2022. The administrator noted that: “It is understood that Securis, as security agent, have an outstanding liability which is secured against specific assets of the Company relating to the GM Data Supply Agreement (“DSA”). We are of the understanding that GM intends to terminate the current DSA and it will require a new DSA to be entered into on new terms with the successful bidder. It is not anticipated that any value will be attributable to the DSA and no other assets are caught under the Securis fixed charge.”
The circa 150 employees who remained employed by Wejo at the time administrators were appointed were owed £495,895 ($635,490) relating to wage arrears and accrued holiday pay while a further £582,504 ($746,480) is outstanding for pension contributions for the period January 2023 to July 2023. The administrator added that total unsecured and preferential debt to employees, including redundancy, arrears and other unsecured employee claims could total over £3m.
Other major dabtors include Amazon Web Services and 47 Degrees LLC, who are each owed almost £0.5m, Citi, which is owed $3.5m, KPMG, whose most significant debt of $854k is owed to its Dallas office, almost $1.13m to Microsoft, over £8m to Weil Gotshal & Manges and just over $2m to Salesforce EMEA.
HMRC is owed around $2.5m, while Wejo’s data partner Palantir is owed $11m.
The administrator added that “the Company’s management accounts were not up to date as at the date of the Administrators appointment” and that based on its findings it does “not anticipate that there will be sufficient realisations to facilitate a distribution” of funds to preferential creditors, secondary preferential creditors or unsecured creditors.
The administrator added that it was initially approached by Wejo “on 14 November 2022, and gave instruction to LC to attend the Company’s weekly board meetings to provide the Directors with advice on their fiduciary duties while the Company underwent a proposed recapitalisation exercise.”
In the appendices to the report the administrator proposes that:
“The Joint Administrators continue to manage the business, affairs and property of the Company in such a manner as they consider expedient with a view to achieving the statutory purposes of the Administration.”
Further that:
“In the event that there are no monies remaining to be distributed to creditors and as soon as all matters relating to the Administration have been completed, the Joint Administrators file a Notice with the Registrar of Companies that the Company should be dissolved.”
