Orthios Update - May 2022

Important Note:  This is an update provided by Best Administration Services (BAS).  BAS is aware of much speculation based around media reports concerning the Orthios site and wants to try to provide as much information as possible.  BAS is not the Bond Issuer and this update has not been provided or approved by the Orthios management team who have previously provided updates.

Orthios’ operating companies (2 of over 20 Orthios companies) were placed into administration by their primary charge holder during April. These two companies employed the majority of the staff on-site and as such this caused fundamental disruption, effectively ceasing all operations.

One effect of the administration was to bring to conclusion the contract for services provided by BAS to Orthios Companies.  Until that point BAS had carried out the day-to-day administration of the communications to Bondholders.  Bondholders, many worried by the recent media reports, regularly contact BAS for updates, but unfortunately BAS is not party to any information and cannot act as a communication source for Orthios at this time.  What we do know is as follows:

Whilst the assembly of the plastics to oil equipment has been progressed for the last few years and Orthios reported construction was almost complete, the largest value asset is the site itself (213 acres). The primary charge-holder on the land is the Bondholder Security Trustee who holds this position on behalf of the individual bondholders.

We understand from the Bondholder Security Trustee that the action taken by the Administrators of the operating companies was taken without notification to the Security Trustee. The Security Trustee therefore acted to protect the position for the Bondholders and placed the land holding company into administration with a different Administrator. 

Both sets of Administrators are following the respective processes of marketing assets to maximise the position for the creditors.

It has been reported in the media since the administration began that there has been significant interest in the site.  To date the Administrator has not shared with BAS the number or value of any interest or formal bids.  The period for marketing the site to bidders and potential buyers is scheduled to conclude in June.  Until this is concluded it is unlikely that anyone, including creditors will receive much by way of formal update from the Administrator.

We are aware that uncertainty leads to anxiety and so we are regularly appealing to the Administrators to update bondholders directly or through ourselves and will continue to do so.