Just a couple of weeks ago, I posted a followup to the Mantria Receiver's Enron-like balance sheet with Revisiting the Mantria Receiver's Enron-like Balance Sheet. In the followup, I wrote the assets at most were valued at $1.2M against liabilities of $42M.
The Receiver posted a balance sheet to PACER for the period ending December 31, 2012 and he also has Mantria's assets valued at $1.2. How did that happen? Only one year ago, he had assets listed at $4.3M. Where did $3M go?
Suddenly, the "property developments" have an unknown value. This includes almost all the land that Mantria paid $5.9M for that does not have potable water and live artillery on premises. Really, it took 3 years to decide there is no value or negligible value for this property. Even the plant building he still lists at $426k while listing it for $346k.
Here's the detail with commentary and the actual document is below:
Total it all up and it is approximately $1.2M, but all the victims can count on is the cash of $618K and we know where the cash will go - the Receiver's fees. At the end of April 2013 it will be 3 years that John Paul Anderson has been on the job as the Mantria Receiver. Should this Receivership continue? I do not think so, but he will remain until all the cash has been absorbed by Alvarez & Marsal.
The December 31, 2012 balance sheet is below:
The Receiver posted a balance sheet to PACER for the period ending December 31, 2012 and he also has Mantria's assets valued at $1.2. How did that happen? Only one year ago, he had assets listed at $4.3M. Where did $3M go?
Suddenly, the "property developments" have an unknown value. This includes almost all the land that Mantria paid $5.9M for that does not have potable water and live artillery on premises. Really, it took 3 years to decide there is no value or negligible value for this property. Even the plant building he still lists at $426k while listing it for $346k.
Here's the detail with commentary and the actual document is below:
- Cash $618k: We see this regularly decrease to pay for the Receiver's fees, as well as the fees of his "friends".
- Various Plant Equipment & Personal Property $200k: This has not changed. Surprise, there is not a market for biochar equipment that never worked and definitely no one will want it at that price. At best, the equipment may be worth $30 to 50k, not $200k.
- Plant Building plus Land $426k: It is listed for $346k, but my estimate based on local real estate and after fees the Receivership may see $225-260k. How does he get away with listing the property for 426k on the balance sheet while trying to sell the property for 346k? Sounds like John Paul Anderson went to the Bernie Madoff school of finance - inflating the value of the asset on the balance sheet while knowing that the asset is not worth that much. Would you hire him as your CFO?
- Property Developments Formerly $3,052k, now listed as unknown value or not worth the value of an appraisal, but notice how next to unknown value it reads "county appraisal". Really, did the county appraise it at unknown value? There is not much demand for property with unexploded artillery and lack of clean water. Let's put this at $1M, but will take 5-10 years to sell and after paying the Receiver for the next 10 years the proceeds to the Receivership may be $50k after carrying costs, sales fees and, of course, the Receiver's fees!
- Mexico Property: Unknown Value - More than a 3 years later it is still unknown? We know the value - it is zero!
- Claims against Gatekeepers: Unknown value - After Receiver's fees and legal fees the Receivership will see $200-500k at the most. Do not kid yourself into thinking there will be any more than this. Remember, it is all about the fees.
- Clawback Claims: Unknown value - The Receiver has no intention of any clawbacks against any investors or employees so why would he even list this. Remember, it is all about the fees.
Total it all up and it is approximately $1.2M, but all the victims can count on is the cash of $618K and we know where the cash will go - the Receiver's fees. At the end of April 2013 it will be 3 years that John Paul Anderson has been on the job as the Mantria Receiver. Should this Receivership continue? I do not think so, but he will remain until all the cash has been absorbed by Alvarez & Marsal.
The December 31, 2012 balance sheet is below:
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