A former high flyer in the Tech boom days - I bought back in at an average around 30p after it was obvious they had more cash than cap - took a few profits in the fifties but held most for a cash back deal but one day found them suspended with the cash missing .... a few peeps over on the dark side had a good laugh but I like the last laugh and maybe that's not far away ....


ains





Orb poised to strike deal with Izodia over 33m
By Simon Goodley (Filed: 22/02/2003) Telegraph


Izodia and Orb Estates, the two companies at the centre of a Serious Fraud Office investigation into 33m of missing cash, are understood to be on the verge of agreeing a settlement.

The deal, which is thought to have been provisionally agreed by both parties, has been struck just as Orb was to be ordered by a Jersey court to reveal the whereabouts of the missing funds, which disappeared from Izodia's account last year. A hearing had been provisionally scheduled for yesterday.

Orb is thought to have agreed to repay the missing cash, plus costs and interest, although timescales are not clear. Sources speculated last night that the deal could lead Orb into a sale of the 37 hotels it bought from Thistle Hotels for 600m last March.

Despite the deal, the SFO's investigation - which is separate from the Jersey hearing - continues. Its officers raided Orb's premises in December after receiving "an allegation of unlawful appropriation of funds" belonging to Izodia.

Orb is the largest shareholder in Izodia, a former software company which has been reduced to a cash shell. Izodia's only two directors during the period being investigated were Jarlath Vahey and Peter Catto, both of whom have ties to Orb.

Orb denies any wrongdoing.

Izodia admitted last month that most of its remaining 33m cash pile is no longer under its control. The exact whereabouts of the funds is still unknown, although the majority of the money - thought to be around 27m - was transferred to associate companies of Orb.

Both companies declined to comment last night.

Any sale of the hotels acquired by Orb from Thistle would add to the activity in a sector which is already at the centre of consolidation and merger speculation.

Coincidentally Singapore investment group BIL International yesterday said it might make an offer for the 54pc of Thistle Hotels it does not already own.

BIL, controlled by Malaysian tycoon Quek Leng Chan, said it was considering paying a modest premium to Thistle's closing share price of 98.5p on Wednesday.

Thistle shares closed up 7.5 at 107.5p.

hmmmmmmm ..... more mystery




Telegraph -


Orb mystery of missing 11m funds at hotels
By Simon Goodley (Filed: 26/02/2003)


Up to 11m of ringfenced funds have gone missing from the Thistle hotels acquired by Jersey-based investment group Orb.

The money, which was part of a pot set aside to pay interest on the money borrowed to fund the deal, might have been "incorrectly transferred" from an account that collected revenues from the hotels, according to documents sent to investors.

Orb acquired 37 hotels from Thistle Hotels for 600m last March. The bulk of the deal was financed with a 531.2m securitisation, which was backed by the revenues of the hotels and arranged by Morgan Stanley.

As part of the deal, revenues from the hotels were transferred into a special Royal Bank of Scotland account in Jersey, and used to pay interest on the notes. The account was controlled by Hotel Portfolio II, an Orb subsidiary.

However, last month Morgan Stanley discovered that funds were missing from the account and called in accountants Ernst & Young to investigate.

Documents sent to the noteholders last week state: "At the current time, certain funds have been identified that may have been incorrectly transferred. Based on the information currently available, it is not expected that the amount will exceed 11m."

Since the discovery, Morgan Stanley has taken control of the bank account and moved it from RBS to HSBC "in order to protect the integrity of the income stream generated". The investment bank said the discovery would not affect interest payments, which have been paid in full. It added that Orb was now looking to sell the hotels.

The latest mystery comes on top of the Serious Fraud Office investigation into the disappearance of funds belonging to Izodia, a cash shell in which Orb is the largest shareholder. The SFO raided the offices of Orb last year and Izodia has embarked on legal proceedings to recover the money from Orb. Orb has denied any wrongdoing.

Thistle Hotels is also pursuing Orb for an alleged 15m it is owed by the investment group after the hotels transaction. Separately Orb has defaulted on two loans, thought to total 10m, from Morgan Stanley. Orb did not return phone calls last night.

S Telegraph


Orb nears Thistle disposal
By Edward Simpkins (Filed: 09/03/2003)


Orb Estates, the Jersey-based investment company, is close to selling its portfolio of Thistle Hotels for 700m, a year after acquiring them for 600m.

Orb is believed to be in discussions with REIT Asset Management, the investment vehicle of the Noe family. REIT may be backed by Apollo Real Estate, a US-based equity house. The deal would involve the pair assuming 531m of debt and paying the remainder in cash for the 37 regional and six London hotels.

The deal would be welcomed by shareholders in Izodia, a failed software company turned cash shell, in which Orb is the largest shareholder.

Izodia has started legal proceedings against Orb to recover 33m of cash, its sole asset, which it claims was transferred to an associate of Orb.

Orb's offices have been raided by the Serious Fraud Office in connection with an inquiry into the whereabouts of the cash. Orb and its directors deny any wrongdoing.

The buyers are thought to be considering redeveloping the Kensington Palace, Kensington Park and Lancaster Gate hotels with the remainder likely to continue to be run by Thistle.

The 600m sale and leaseback between Orb and Thistle signed last March has since become fraught with difficulties. Orb is being sued by Thistle for refusing to pay 15m of the sale price while Orb is countersuing for 54m, the amount by which it claims the value of the hotels was overstated by Thistle.

This should make the recovery easier - one assumes

ains



LONDON (AFX) - ORB arl said it has exchanged contracts to dispose of 37 Thistle hotels to a new company controlled by Allan Rankin, whose family controls two of Newcastle's quoted companies, Ultimate Leisure PLC and Metnor PLC.
The portfolio of hotels, recently valued at in excess of 900 mln, stg are managed by Thistle Hotels PLC which guarantees to provide not less than 45 mln stg of clear income to the owners.

Allan Rankin, chief executive of Ultimate Leisure and deputy executive chairman of Metnor, and his associates, including Mr Barry Moat, have stated that they intend to continue the strategy of enhancing the asset value of these properties, ORB said.

The three hotels that surround Hyde Park are currently subject to planning applications for change of use to residential.

It is anticipated that Rankin will develop these properties in partnership with a high end residential developer, and talks have reached an advanced stage with Northacre PLC to assist in this process, ORB said.

A number of other sites in good locations in regional towns have also been identified by Rankin's team as having significant change of use development enhancement.

newsdesk@afxnews.com

03/21 19:05
Orb to Sell 37 Thistle Hotels Worth $1.4 Bln to Allan Rankin
By Mark Deen


London, March 21 (Bloomberg) -- Orb Estates Plc, a U.K. real estate company, said it agreed to sell 37 Thistle hotels, worth more than 900 million pounds ($1.4 billion), to a company controlled by millionaire entrepreneur Allan Rankin.

The hotels, including the Thistle Kensington Palace in London, are managed by Thistle Hotels Plc. Thistle ``guarantees to provide not less than 45 million pounds of clear income to the owners,'' Orb said in a Regulatory News Service statement.

The hotels were ``recently valued in excess of 900 million pounds,'' Orb said in the statement, without giving terms of the sale to Rankin. Orb bought the properties from Thistle for 600.4 million pounds in March last year.

European hotels are attracting investors even as room prices and occupancy rates decline because they offer higher returns than stocks, according to a DTZ Holdings Plc report this month.

Orb, which borrowed the money from Morgan Stanley to buy the hotels last year, has defaulted on two loans and wants to sell the hotels, Morgan Stanley said in a letter to bondholders obtained by Bloomberg News last month.

Moody's Investors Service and Standard & Poor's have said they may cut some of the ratings on a 531 million-pound Orb hotel bond. Morgan Stanley underwrote the bonds last year after lending Orb money to buy the hotels. Orb used the bond issue to repay Morgan Stanley.

Allan Rankin and his family control Ultimate Leisure Plc, which owns a string of themed bars and night clubs in northern England, and Mentor Plc, a U.K. engineering company.

There are lots of big companies equally interested in the cash and where it goes ......



Jamie Doward, deputy business editor
Sunday March 23, 2003
The Observer

Jersey-based Orb Estates, currently the subject of a Serious Fraud Office investigation, faces further controversy after the sale of its Thistle hotel

portfolio to Allan Rankin, a Tyneside-based multi-millionaire. It has emerged that Rankin is a close business associate of an Orb adviser censured by the Takeover Panel for failing to disclose his links with Orb.
The SFO is looking into the disappearance of 33 million belonging to failed dotcom firm Izodia, in which Orb has a 29 per cent stake. The money was transferred into an account of an Orb associate company, although it is not clear where it is now. Izodia's shareholders gave Orb until last Monday to come up with the cash and have now started legal proceedings.

The hotels sale may raise concerns among Izodia's investors, who will be surprised by the news. Several other firms were circling the hotel chain, which Orb bought last year for 600m. But, in a shock move, Rankin has stolen a lead. Under the deal the Thistle chain's debt and financing structures will be transferred to Rankin's offshore company, Incontrast.

This would separate the hotels from Orb Estates and its liabilities, raising concerns over what claims - if any - Izodia's shareholders may have on the sold-off assets. Orb has so far failed to say what it will do with the cash.

The deal will draw attention to serial entrepreneur Jon Pither, who has strong links with Orb and Rankin.

Pither was ousted as Izodia's chairman when shareholders complained to the Takeover Panel that he was not suitably independent to advise the company on an indicative bid by Orb. Shareholders were alarmed when they learnt Pither was a non-executive director of Abingdon Capital, an adviser to Orb.

In addition, he has a place on the board of Prestige Travel, with Orb director Charles Helvert, and was once a director of Orb-backed oil exploration firm Atlantic Caspian Resources, along with former Orb director Peter Catto. Catto resigned as an Izodia director last year, as did another of its executives, Jarlath Vahey, who also had connections with Orb.

Now it has emerged that Pither sits on the board of two companies run by Rankin - Ultimate Leisure and Metnor Group - raising fresh questions over the tangled nature of Orb's business relationships. An Orb spokeswoman said: 'We don't talk to journalists.' Rankin and Helvert declined to return calls. Pither was uncontactable at the time of going to press.

It seems I've been a bit slow to pick up that this thread is kinda linked to the Thistle thread! But I've found it at last!

There seem to be some really dodgy people running these companies (and getting away with it?)

Yes ..... as it happens I still had a holding when they took the money from the bank account and the shares were suspended ..... a strange situation but hopefully the lawyers are getting to the point of seizing assets and getting a few peeps inside.


ains

Hmm, thanks for that, ains. Sold my shares in Ultimate Leisure and Metnor (as well as Izodia) last year, but I've been watching the first two with a view to possibly getting back in at some point. The news that Pither is chairman of both (and is the same Pither who was involved with Izodia) makes me think there could be safer places to put the money.

I would be very careful with all these guys - also connections with a few others I suspect. Nothing from the police yet


ains

Talk is that legal moves have been put on hold whilst Orb sell their Thistle Hotels .... settlement is said to be weeks away rather than months - ORB still deny any wrong doing ...... hmmmmmmm


ains

Change of directorship announced - Measham has resigned and replaced with Christopher Mills from Hambro



ains

but where's the ca$hpile ?

Diogenes. Thanks for that info re Pither - Very worrying as Metnor is (now probably was) on my watch list. If he is indeed involved could the cloak of Robert Maxwell have fallen upon his shoulders?

This story is like a wild goose chase

Orb Estates Plc, which borrowed money from Morgan Stanley to buy 32 Thistle hotels including the Thistle Kensington Palace in London, has defaulted on two loans and wants to sell its hotels, Morgan Stanley said.

``Orb recently decided to exit the hotel business and is currently in discussions with a number of potential purchasers,'' the second-largest securities firm told Orb bondholders this week, according to a letter dated Feb. 17 obtained by Bloomberg News.

Moody's Investors Service and Standard & Poor's said they may cut some of the ratings on a 531 million-pound ($848 million) Orb hotel bond. Morgan Stanley underwrote the bonds last year after lending Orb money to buy the hotels from Thistle Hotels Plc, a hotel operator. Orb used the bond issue to repay Morgan Stanley.

Gerald Smith, a spokesman for Orb, declined to comment.

``Morgan Stanley can confirm a letter went out to bondholders this week concerning a number of matters related to the Orb group,'' said Alexander Northcott, a Morgan Stanley spokesman.

Last year the bonds, issued by Orb affiliate HOTELoC, received the highest possible rating of AAA at both rating companies, the same grade as the U.K. government, because they were backed by Thistle hotel revenues. Many companies come to the asset-backed market because it's easier to borrow when promising lenders revenues as collateral.

Orb defaulted on two loans to Morgan Stanley and one of its affiliates, according to the bank's letter. If the hotels aren't sold ``in a timely manner,'' Morgan Stanley may appoint a receiver to protect its loans, the letter said.

Shortfall

``Moody's has learned that there may be a shortfall of as much as 11 million pounds in the funding of one or more accounts of the borrower,'' the company said in a statement.

The sale of hotels might also be bad news for bondholders, because Orb had planned to convert three hotels near Hyde Park into high-priced condominiums, according to Moody's. A new owner might not follow those plans, the rating company said.

``With a change in ownership, we need to figure out what's going to happen,'' said Moody's analyst Charles Gamm. The hotels slated for conversion were Lancaster Gate Thistle, Kensington Palace Thistle, and Kensington Park Thistle, he said.

In its letter, Morgan Stanley told investors it hired an outside auditor, Ernst & Young LLP, to review cash flows set aside for bondholders.

The letter mentioned ``adverse publicity'' about an investigation by the U.K.'s Serious Fraud Office into Orb affiliates, and lawsuits brought against members of the Orb Group.

The SFO is investigating allegations by a member of the Orb Group that funds were misappropriated, said Jina Roe, an SFO spokeswoman, in a telephone interview. The SFO and police searched addresses in London and Jersey, she said.

Morgan Stanley in its letter said a sale of the hotels ``should not adversely impact'' the bonds

that sounds like old news snappy - when was it dated?


ains

it is old news just like this company is ains.

hmmmmmmmm ....... I really do not think you sould attempt to mislead people with old news snappy .... it's rather irritating and of no interest to anyone

don't be daft old fruit, this one is suspended and will probably stay that way.

:-o

I am neither a fruit nor old and it doesn't matter to you whether they stay suspended or not ..... but still no reason for you to post old news to try and mislead people ..... get a life

Oh ainsey old fruit there is no reason for your negative reaction

:-o

"I bought in at around 30p" !!!!

ROTFLMAO !!!!

On every bulletin board there is for the last 5 years
you have been long in these and in particular on Market
Eye from prices 7 downwards :-))

Keep up the lies ainsoph...you will never win !!!!

Gravy

duh ..... i bought a few at 30p and sold at over 30 ..... not a bad trade :-))

LOL !!!!!

You just cannot help yourself can you Keith !!!

The lies just flow :-))

When will it end ???

Gravy

jesus wepped ..... you are a sad little turd

LOL!!!!!!!!!

Fresh blow for Orb as Thistle sale turns sour

Secretive Jersey-based company may recoup less than it paid for hotel group

Jamie Doward, deputy business editor
Sunday April 27, 2003
The Observer

Attempts by Orb Estates, the secretive company at the centre of a Serious Fraud Office investigation, to sell 37 Thistle hotels to Newcastle tycoon Allan

Rankin for750 million, have come unstuck.
The Jersey-based firm has been trying to dispose of the hotels to Rankin for weeks in an attempt to pay off creditors. Rankin, a close business associate of Jon Pither, a 'serial' director and former adviser to Orb, said the deal was 'a dream come true'.

But sources familiar with the situation say Rankin is no longer in the running, leaving the way open for two other parties. An announcement on the eventual winner is expected within the next two weeks. The company leading the pack is said to be a financial bidder that has so far not been linked with the deal.

News that Rankin has failed to acquire the Thistle hotels portfolio could be a serious blow for Orb. The company needs to pay off outraged investors in bombed-out dotcom firm Izodia, in which Orb owns a 29 per cent stake. Shortly after acquiring the stake, 33m of the firm's cash was transferred into an account belonging to an Orb subsidiary, a move that prompted the SFO to investigate. The company also owes a number of banks more than 30m and the Thistle hotel group around 15m.

Although Rankin pledged to buy the hotel portfolio for 750m it is not clear how he would raise the cash. Sources say advisers for Rankin had started sounding out interested parties to buy chunks of the hotel group within weeks of him buying the assets.

His removal from the bidding war leaves open the prospect that the eventual buyer may end up acquiring the hotel assets for significantly less than the 600m Orb paid for them last year.

The hotel sale is being masterminded by Morgan Stanley. The bank is attempting to ensure that all parties are satisfied with the outcome and has presided over a complex series of discussions to produce a settlement.

One party keenly involved in the negotiations is Laxey Partners, which holds a sizeable stake in Izodia, has a rep resentative on its board, and has been vigorously pressing Orb to return the missing millions. However, in a move that once again highlights the Byzantine complexity of Orb's network of business dealings, it appears that the Jersey company has been involved in transactions with Laxey in the past.

In April 2002, Laxey sold a 17 per cent stake in Izodia to MU Nominees, a company that had bought a sizeable interest in another Orb investment, Atlantic Caspian Resources in 2000. MU Nominees bought the Atlantic Caspian stake on behalf of Jersey Asian Venture Fund ILP - a joint venture with Orb's parent company Lynch Talbot. The revelation will once again draw attention to the strange links between Orb and Izodia.

Last year, Pither stood down as Izodia chairman Pither following advice from the Takeover Panel. Investors had expressed concerns that, as a former director and close business associate of Abingdon Capital, Orb's main financial adviser, Pither was open to a conflict of interest claim.

Fresh blow for ainsoph as Thistle sale turns sour !!!

Jesus wepped ..... you are a prat gravy/dreamer/ollie/shagnasty/snappy etc etc .... the shares are suspended - they have been suspended for months

I think it's time for some positive action - maybe they should approach things in a more laterial way


ains


Izodia considers legal action on RBSI
By Astrid Wendlandt
Published: May 8 2003 22:54 | Last Updated: May 8 2003 22:54


Izodia, the former e-commerce software company, is understood to be considering whether it has grounds for action against Royal Bank of Scotland International arising out of the circumstances in which 27m of its cash was transferred by the Jersey bank last year.


Jenners, Izodia's retained law firm in Jersey, has been in contact with RBSI's lawyers. The bank said it would defend any proceedings that may follow.

Izodia said in January that most of its funds were no longer under its control after having been transferred to a company associated with Orb, the Jersey-based investment group that is Izodia's largest shareholder.

The funds are believed to have gone to Lynch Talbot, an investment company that has common shareholders with Orb.

Orb's offices were raided by the Serious Fraud Office in December as part of an investigation into allegations that it misappropriated Izodia's cash. Orb denies any wrongdoing.

Rory Macnamara, Izodia's chairman, said: "Our lawyers are looking at every possible avenue for returning the funds."

RBSI said: "Given Izodia's threat of litigation, it would be inappropriate to comment on the specific allegations they have made." The bank added that it had no intention of "acting as a guarantor of Lynch Talbot's liabilities" and would "vigorously defend any proceedings that may follow".

Izodia is engaged in legal proceedings against Orb in Jersey in an effort to obtain disclosure of how it disposed of its funds. Izodia's shareholders, which include institutions such as Prudential, Morley Fund Management and JO Hambro Capital Management and Laxey Partners, have been trying to get Orb to return the cash since last year.

They have been hoping that the Jersey investment company would return Izodia's funds once Orb sold a portfolio of 37 hotels it bought from Thistle in a 600m deal. But Orb has been trying without success for two months to find a buyer for the properties. RBSI said it would "co-operate fully with all relevant authorities".

The longer it drags on the less chance IZO shareholders have got of seeing any ca$h imho.

Best of British luck to any unfortunate shareholders but this does appear to be one wild goose chase.

Perhaps IZO holders could be offered a few free weekends in the 37 Hotels that Orb are trying to shift?

I don't think you know any more about the situation here than you do on Tads

I did say some months ago that tracing the ca$h and getting it back would be very difficult. Here we are some months later and still no ca$h.

The free hotels stay is only fair as it looks like the IZO shareholders money has been used in part to pay for the hotels.

Sounds like you are very bitter abouot this ains. Relax enjoy the nice weather, have a cup of tea.....

The record seems to be stuck snappy - why do you always assume peeps are bitter about everything. I made my money out of these a while back and the current situation will eventually be resolved and whilst no one likes money being lost or stuck somewhere - it's hardly life threatening and I am sure there is more than one way to skin a cat.

Currently having a drink on the terrace and feeding the KOI who are starting to get friskey as the weather warms up ....

get a life


ains

try that and I'll report you to the RSPCA!!!!!!!!!!

jesus wepped ..... this thread is about news on IZO snappy .... please F.O

Experience says you can only negotiate with peeps like orb on the steps of the courtroom a few minutes before going live.

ains




Izodia presses case against shareholder
By Carolyn Batt (Filed: 10/05/2003) Telegraph


Izodia, the former e-commerce software company chasing 33m of missing funds, yesterday said a legal case against major shareholder Orb was back on, after the investment group allegedly failed to disclose the whereabouts of the money.

Rory Macnamara, chairman of Izodia, said: "We thought we would get disclosure from Orb voluntarily, but it was not forthcoming. The halt to proceedings was only temporary, but I have no date for when we are back in court."

Mr Macnamara said that Izodia had brought actions against Orb, Lynch Talbot - an investment company that has common shareholders with Orb - and Gerald Smith, who was an adviser to Orb before becoming a director.

Mr Macnamara said that the company was also considering legal action against Royal Bank of Scotland International, with whom Izodia had an account, and "every other party that was concerned with the company during the relevant period."

Meanwhile, the Serious Fraud Office, which raided premises of both Orb and Izodia in December, has an ongoing investigation into the disappearance of Izodia's cash.

Orb, which could not be contacted yesterday, has consistently denied any wrongdoing. A spokesman for the Royal Bank of Scotland said that the bank would "vigourously defend" any proceedings.

Izodia shareholders cheer but 33m missing
By Edward Simpkins (Filed: 25/05/2003)


Accountants and regulators have failed to trace the millions of pounds that vanished from a Jersey bank account. Edward Simpkins reports

It is the news that Izodia's long-suffering shareholders thought they would never hear. Six months after 33m vanished from the failed dotcom company from the failed dotcom company, a deal has been struck that should see their loss made good - albeit in several tranches over the next two years.

A buyer has come forward prepared to pay 650m for a portfolio of Thistle hotels owned by Izodia's biggest shareholder, Orb Estates. The buyer, Midlands-based businessman Andy Ruhan, has agreed that part of the purchase price should go to Izodia's shareholders to head off potentially damaging litigation.

The shareholders are relieved and delighted. But unanswered questions remain about how the money was removed, who was responsible and what steps the authorities, banks and professional advisers took to protect investors.

What we know for sure is that some 33m, the internet software company's main asset, vanished in August and September last year.

Shareholders expressed concern after Orb, a property company, acquired a 29 per cent stake in Izodia and new directors, several closely associated with Orb, joined Izodia's board.

In circumstances that have never been comprehensively explained, Izodia's funds were then transferred to Royal Bank of Scotland International (RBSI) in Jersey, where Orb is based and where its parent company, Lynch Talbot, held accounts. What has happened to the cash since then is unclear.

The Jersey and London offices of Orb, which has denied any wrongdoing, were raided by the Serious Fraud Office in December and large quantities of documents were removed. Five months later there has been no further action, no arrests and none of the money has been recovered. "The SFO has told us nothing, there is a total vacuum," one shareholder said this weekend.

A professional adviser to Izodia has told the Telegraph that despite concerns being raised as early as September last year he has still not been contacted by the SFO or asked to provide copies of relevant documents.

Orb is part of a huge web of companies stretching as far afield as Australia and the Middle East. Attempts to map the empire have led to dead ends and endless cross shareholdings between companies based in Jersey, Lichtenstein and the British Virgin Islands.

Last year Orb bought a 600m portfolio of hotels from Thistle and leased them back to the hotels operator. It then raised 531m through issuing debt backed by the hotels, with the interest to be paid from the rent from the hotels. That refinancing was arranged by Morgan Stanley, the investment bank.

While it was arranging the debt, Morgan Stanley did not discover that a leading figure at Orb, Gerald Smith, who had been attending meetings with the investment bank, was sentenced to two years in prison in 1993 for stealing 2m from the pension fund of a company of which he was chief executive.

Morgan Stanley points out that it had previously done business with Orb without problems and that Smith was an Orb adviser, not a director, at the time. However, it appears that late last summer the bank account at RBSI that was supposed to have been reserved for receiving rent from Thistle's hotels and paying interest to creditors was being used for other purposes.

An insider with knowledge of the deal says part of Izodia's money could have been transferred into that account. He says payments from the account may have been used to pay interest on loans to other Orb subsidiaries. A 13m shortfall in the account then came to light and the account was transferred from RBSI to HSBC on the mainland.

On Friday RBSI issued the following statement. "RBSI is aware of the ongoing SFO investigation into the Orb group and will of course co-operate fully with all relevant authorities. Given Izodia's threat of litigation against RBSI, it would be inappropriate to comment on specific allegations. RBSI has no intention of acting as guarantor of Lynch Talbot's liabilities and will vigorously defend any proceedings that may follow."

It is not known who authorised the transfer of the funds. Izodia's efforts to get Orb to hand over documents that could help trace its money have so far been fruitless. Orb was ordered to hand over documents to Izodia by a Jersey court earlier this year and is due to reappear before the court next month to answer contempt proceedings for failing to produce them.

The money vanished in such complicated circumstances that a team of forensic accountants from Ernst & Young, appointed by creditors four months ago specifically to track down the cash, has so far failed to find it.

Investors are dismayed by the apparent slowness with which the Jersey authorities have moved and by the difficulty in obtaining basic information. "There appears to be a real road block in Jersey," one shareholder said. "It is extremely difficult to get to the facts."

Richard Pratt, the director general of the Jersey Financial Services Commission and also the registrar of companies in the island, said the authorities there had been aware of the situation early on and continued to monitor the case.

"The allegations that have been made are extremely serious but there is nothing about them that is unique to Jersey," he said. "It hasn't made it any harder for people to do something about it because the company and bank involved are based here."

Meanwhile a spokeswoman for the SFO said: "We've only had this case since December and with our cases being both serious and complex, that can mean a hell of a lot of evidence to be sifted through. I don't think it would be fair to say this case has taken a particularly long time."

S Telegraph

Orb sells Thistle hotels for 650m
By Edward Simpkins (Filed: 25/05/2003)


A multi-millionaire property entrepreneur is close to buying 37 Thistle hotels from Orb, the troubled property company, in a 650m deal.

Under the deal, Andy Ruhan will take on 531m in debt and also provide 123m in cash. Ruhan is best known for setting up Global Switch, the property company specialising in buildings that house telecoms equipment, which he has now sold. Ruhan may redevelop some of the hotels into luxury apartments.

Orb is being investigated by the Serious Fraud Office following the disappearance of 33m from Izodia, a cash shell in which it is the biggest shareholder. Orb has denied any wrongdoing. Ruhan's deal has been structured to provide for 33m to be paid to Izodia while a number of Orb's outstanding debts will also be paid off.

The majority of the portfolio, 32 hotels, was refinanced last year in a 531m bond issue by Morgan Stanley, the investment bank. The remaining five properties are country house hotels not included in that deal.

Last year a 13m deficit was found in an account which was set up to receive rent from Thistle and pay interest to bondholders. The deficit will be made good from the sale proceeds. A 17m bridging loan made by Morgan Stanley to Orb that has been in default since December will also be paid off.

Well you have to be pleased with yourself ainsoph for
pushing this share on every bb around and giving any
investor who was foolish enough to listen to you many
many sleepless nights.

Well done !!!

Gravy

Are you on drugs gravy ....... do you have any idea what you are talking about - or do you just let your mouth do it's own thing ....




Ian

Is there any chance of stopping this peeps from posting this kind of garbage. some people might be shareholders and have an interest in reading on what is happenning. This isn't the first time today - or any day - that the gravy peeps posts gargage to try ang get attention for some ulterior purpose.

Nice Keith.....very nice !!!

So by saying the truth about you and this share you come
and reply that i am on drugs.....charming !!!!

Gravy

You two are like siemese sisters


Time Tomorrow

May 26, 2003

Izodia to press on with 33m lawsuit
By Nic Hopkins



IZODIA, the failed internet start-up, is to press on with a lawsuit against Orb, its largest shareholder, over a missing 33 million, despite being promised the cash by the entrepreneur that has agreed to buy Orbs hotel business for 650 million.
Andy Ruhan, a Midlands-based businessman, has offered to pay Izodia the 33 million within the next two years as part of a deal to take control of 37 Thistle hotels owned by Orb Estates. The deal, brokered by Morgan Stanley, is expected to be signed this week.

Mr Ruhan, who made a fortune in telecoms and property, is likely to convert some of the hotels into luxury flats. He has also promised to repay 11 million that is missing from the accounts of the hotels portfolios bondholders, as well as a 70 million bridging loan provided to Orb by Morgan Stanley.

Rory Macnamara, Izodias chairman, said that while the news was clearly a positive development, Izodia would keep its next date in court with Orb, set for mid-June.

Izodia is demanding that Orb and Lynch Talbot, a firm associated with the investment company, return the missing funds. When the funds went missing Izodia had only two directors, Peter Catto and Jarlath Vahey, both of whom had been appointed by Orb, an investment group that holds almost 30 per cent of Izodia.

Ruhan linked to Orb's Thistle portfolio

JOHN BOWKER The Scotsman


ORB Estates, the secretive Jersey-based property company, is believed to have sold off its Thistle Hotels portfolio to a little-known Birmingham-based entrepreneur.

The deal, thought to be worth about 700 million for 32 hotels, will end months of speculation over one of the embattled Orbs most prized assets. The company has been rocked in recent months by spiralling debts and an investigation by the Serious Fraud Office.

The hotels are reportedly being bought by Andy Ruhan, who made his fortune in the property and telecoms sectors. The businessman has beaten off several better known names for the portfolio, including Newcastle tycoon Allan Rankin, who reportedly offered about 900m for 37 properties earlier this year.

Ruhan is understood to be inheriting 531m of debt, and will put up an extra 123m in cash. The deal also includes a 70m bridging loan provided by Morgan Stanley, on which Orb had defaulted.

The deal will raise the hopes of shareholders at decimated dotcom firm Izodia, who have seen 33m of their cash mysteriously disappear into an account belonging to Orb.

Ruhan is believed to be replacing the missing cash, which prompted the Serious Fraud Office inquiry as well as the threat of legal action from Izodia shareholders. The sum can be redeemed in two years time.

Orb has recently put a number of assets up for sale, including Seafield Logistics and Poole Pottery, as the firm strives to raise cash and cut debts.

The future of Thistle Hotels is unclear, although Ruhan is said to be continuing with plans to convert three of the properties into luxury flats.

In March the group rejected a 540m takeover approach from major shareholder BIL Investments. The suitor failed to secure the required 94.6 per cent of shareholder backing, after Thistle directors urged shareholders that the offer was too low.

Thistle Hotels operates 55 properties in total, most of them four star hotels. .

Ruhan is chairman of internet network provider PSINET Euroipe. He made his fortune with Global Switch, the property company specialising in buildings that house telecoms equipment.

11 September 2006 2 pages

Izodia plc: Gerald Smith sentenced
Gerald Smith was sentenced today at Cambridge Crown Court to eight years' imprisonment for misappropriating over 34 million belonging to Izodia plc and to false accounting. He has also been disqualified from acting as a company director for 15 years. He had pleaded guilty in April this year. Costs and confiscation have been put over to a date later this year to be confirmed

Izodia was a company trading in computer software, a 'dot-com' company. When the dot-com bubble burst, Izodia did little trading but became a cash shell. In 2002 Dr Gerald Smith (dob 21.05.55) through his Jersey-based property business, the Orb Group, acquired a substantial stake in Izodia and was able to exert control, which resulted in the movement of Izodia's cash asset from the Reading Branch of the Royal Bank of Scotland to Jersey from where it was stolen by Smith.

Following a complaint made by the Royal Bank of Scotland, the Serious Fraud Office, together with the Thames Valley Police, commenced an investigation in December 2002 into suspected fraud surrounding the missing funds. Dr Smith was charged in February 2005. Proceedings were also commenced against two other defendants, Jarlath Vahey and Peter Catto, ex-directors of Izodia. All charges relate to events in 2002.

On 24 April 2006 the trial of Smith and Vahey opened at Blackfriars Crown Court (Catto was severed from that trial because of ill health). Dr Smith pleaded guilty to ten counts of theft contrary to section 1(1) of the Theft Act 1968 and to one count of false accounting contrary to section 17 of the Theft Act 1968. The amounts stolen represent over 34 million. Two counts of conspiracy to defraud contrary to Common Law and one count of using a false instrument contrary to section 3 of the Forgery and Counterfeiting Act 1981 were not proceeded with.

Following the plea entered by Smith, the SFO decided not to continue with the prosecution of Vahey and on 24 April 2006 the charges against him (two counts of conspiracy to defraud) were left on the file. With regard to Catto, the SFO informed the court today that charges against him were also to lie on the file.

Sentencing and confiscation
The sentences of imprisonment handed down today to Gerald Smith are (a) four year on three of the theft counts to run concurrently to each other and (b)four years on each of the remaining seven theft counts and the false accounting count also to run concurrently to each other. The two sets of four-year concurrent sentences are to be consecutive, i.e. the term of imprisonment represents eight years.

The defendant was also disqualified from acting as a company director for 15 years.

The SFO has pursued restraint and confiscation of assets and today the judge set the confiscation hearing for a date in November but to be confirmed.

END