Manchester vehicle data firm Wejo owed over $100m at the time of its administration, Manchester Business and Property Courts has confirmed in a judgement passed on January 27.
Manchester-headquartered, Nasdaq-listed vehicle data specialist Wejo filed its notice of intention to enter administration with the US Securities and Exchange Commission in 2023. It has several spin-off companies that do not appear to be affected by the administration.
As at the date of administration the estimated sum owed to creditors, tallying with the administrators’ 2023 report, was $104,541,133.50, including $15.5m to Glas Americas LLC as security trustee for General Motors, and circa $39m to Securis.
In the course of the administration, the joint administrators sold some of the company’s intellectual property to Jacobs Engineering Group Inc. for $14m, which appears to have upset debtor Securis.
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It is the Joint Administrators’ case, relying upon legal advice from two separate firms of solicitors, that Securis has no claim as a secured creditor on the proceeds of the sale to Jacobs, and the joint administrators have used the same in order to make an initial distribution to Glas (as security trustee for GM, with whom Wejo had a major contract) of $10,650,000.
It is also the Joint Administrators’ position that realisations and/or likely future realisations are such that no distribution is expected to be made to Securis, either as secured creditor or unsecured creditor.
An issue has now arisen between the Joint Administrators and Securis with regard to Securis’s priority as a secured creditor, and/or in relation to the assets of the company to which Securis’s security might attach, which currently doesn’t look hopeful for $39m-down Securis.
The entitlement of the Joint Administrators to proceed has been challenged by Securis, and Securis has sought further information, yet to be provided by the Joint Administrators, with regard to the subject matter of the sale to Jacobs. However, Securis has yet to commence any form of proceedings, whether for pre-action disclosure or otherwise.
Subject to the stand taken by Securis, the only other party with any prospect of any distribution in the administration of the Company is Glas, which does not oppose the administrators’ application.
Judge HHJ Cawson KC said: “The Joint Administrators’ formal position has been that I should give weight to the view adopted by Glas, and very limited weight to the views of Securis on the basis that it has no tangible interest in the administration of the company. However, in view of the fact that I cannot, and I am not invited to determine Securis’s entitlement, I must, as is accepted by the Joint Administrators, proceed on the basis that Securis may have a real interest in the administration, and therefore that the position that it takes cannot be ignored and must be taken into account.”
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The latest figures largely tie in with the previous expectations of the administrators. In a nutshell, Wejo’s $100m+ administration drags on.
It’s all a bit of a comedown for a tech unicorn with cars that didn’t work, sketchy HR practices and, like, massive losses.
Prolific North has previously attempted to contact Wejo founder Richard Barlow, who we understand is mostly in the Caribbean, the administrators, and several Wejo board members, on multiple occasions, without a response. We have, of course, tried again today.
Sources at Wejo tell us we (technically I personally) were/was very unpopular in pre-administration board meetings.
