26.11.2018 – 11:35
Envion investors get their money back
Company will be liquidated
The Cantonal Court of Zug has ruled that envion AG shall be liquidated due to a regulatory default called "Organmangel". This has been reported by the German company Quadrat Capital GmbH, as shareholder of envion AG. The liquidation will be implemented by the bankruptcy authority in Zug, in accordance with Swiss bankruptcy law. As a result, envion AG creditors, an estimated 37,000 ICO investors, will have their investments returned to them.
The reason for the court ruling is the absence of government-licensed auditors ("Revisionsstelle"), which in accordance with the Swiss Code of Obligations is mandatory for companies issuing public bonds. The original auditors of envion AG, PwC, stepped down in the beginning of March, after the Supervisory Board detected irregularities within the ICO.
According to the court it was not possible to engage a new auditor because the founders team and their Trado GmbH withheld the decisive ICO data from both the Supervisory Board as well as from the law firm appointed by the Swiss banking regulatory authority, FINMA. The suggestion of the supervisory board to judicially appoint an auditor was also "not practical, due to the fact that without the documents withheld by Trado GmbH, it is obviously effectively impossible." (Cantonal Court of Zug, ES 2018 317, S.5).
As a result, the refusal by the founders to release the ICO information has ultimately led to the liquidation of the company.
According to assessments by shareholder Quadrat Capital, the refund ratio for investors will depend on whether the bankruptcy authority only acknowledges the about 86 million tokens placed on the market for the ICO as justified, or instead also the additional 41 million tokens that were created by the founders without the consent of the Supervisory Board. In the first case the disbursement rate could be significantly higher than 90%, in the second case far below 60%.
An additional factor for the disbursement is the investor money that had been withheld by the founders, which has a volume of up to USD 10 million. envion AG has initiated two lawsuits against Trado GmbH to access these funds, which are being continued with the consent of the Swiss authorities.
As shareholder, Quadrat Capital is pleased that the envion AG assets were able to be nearly completely preserved and are now available for distribution to the investors. This can be attributed to the decision by Supervisory Board President Matthias Woestmann, already made in February, to exchange the received cryptocurrency into US dollars. The move protected the assets of the company from the crash of crypto currencies.
Quadrat Capital GmbH
Original content of: Quadrat Capital GmbH, transmitted by news aktuell