Psychic News, SNU Spiritualist National Union and Liquidator

Hi All,

I thought I would have another look at this and gather some more information. Unfortunately my knowledge of the UK laws is a little old because it formed part of my Accounting Studies way back when Adam was a lad. However the laws are very similar to Australia on which I am very experienced and it was one of my best subject’s way back then.

The first thing I notice is that it is said there is a liquidator being appointed. We have been told that the decision was made on the 12th July, but as of today the liquidator has not been notified to Companies House. Therefore legally no liquidator has actually been appointed as they have only 7 days to notify Companies House of their appointment. I expect that the appointment date will obviously be as stated 3oth July notified by the 7th August.

These date issues are entirely significant because in any liquidation one of the key issues is the date the actual decision was made. I will explain that in due course. In this case it is clear a liquidator was briefed, possibly around the 12th July (if not earlier) so the decision to put PN into liquidation was also made at an earlier date.

Looking at Roy Stemman’s Paranormal Review it is quite clear that he would have been talking to David Bruton, whom he describes as Psychic Press’s Finance Director, not as I believe his role was,Chairman of Psychic Press, some months before that. It is also clear that he felt the decision had already been chosen then. Therefore we may be looking at a Directors decision as far back as late April or sometime in May.

However, before we look at this let us look at the concept of “liquidation” and the actual rules involved.

Directors rarely liquidate a company, unless all of its debts have been paid off, it has ceased operating and is moribund.

If a company is in a position where the Directors feel it cannot keep trading in its current form they normally appoint an Administrator. This is an experienced accountant who works through the affairs of the company and negotiates with the creditors. Quite often the company enters a scheme of arrangement with its creditors, paying only a proportion of the debt provided the company continues trading. I actually negotiated an agreement on behalf of a consulting client of zero cents in the dollar. The creditors wanted to remain involved with the large contracts the man had and placed caveats on financial controls to make future profits.

This step may well lead to a liquidator being appointed, also if there is a secured creditor they will also often step over an administration, appointing a Receiver. A Receiver takes possession of all assets and sells them for the highest price until all the secured debt is cleared. By that stage the unsecured creditors will have appointed a liquidator who continues the sales to recover what little he can for the unsecured creditors after he takes his fees out (his fees have first right to the money).

It is the liquidator who will investigate such matters as insolvent trading. As I have already written it is normal policy to threaten an action to obtain some money from the Directors to pay their fees.

Now we are being told it is a liquidation that has occurred with PN, therefore, in this case one presumes that the SNU themselves must have triggered this by placing a Statement Of Demand upon Psychic Press for the repayment of their debts. Knowing that they cannot be paid it would trigger the appointment of a liquidator. This suggests the statement of demand was made upon the 3rd July allowing the SNU to trigger the liquidation on the 3oth July. The Statement of Demand is made in the Court and the Court then appoint the liquidator on application by the SNU. Normally it will be the next liquidator in line and the liquidator is in fact an officer of the court with unusual and widespread powers. It may be possible for a major creditor like the SNU to influence the liquidator chosen.

There is no mention of a Receiver so I am presuming there are no bank borrowings secured on the assets of Psychic Press who may step in to pre-empt any liquidation.

I have taken this time to explain it because there are a number of unusual facts in the case of what has happened with Psychic Press and PN. Firstly let us look at the close relationship between the SNU and Psychic Press. The President of one is Chairman of the other and I would presume others of the NEC may have directorships roles in Psychic Press.

So since April or May we have one creditor planning to liquidate Psychic Press with its own officers in key roles within Pyschic Press. Clearly they decided the closure well before the July 3rd date I mention above.

Yet they continued to trade the company although they knew that in liquidation the company could not pay out its creditors. Indeed from the day they decided that the company would be put into liquidation they should have ceased paying any of their suppliers, the SNU for rent or admin charges and receiving book orders or taking newspaper subscriptions.

There are strict laws governing all of this and looking from the outside these may have been broken. Any or all payments to suppliers may be treated as preferences in the liquidation and clearly there are signs of insolvent trading.

However friendly a liquidator may be, once alert to any of these possibilities, I am sure they will be able to scent a way to pay themselves. As a court officer they also have a duty to investigate any and all dealings from the first time that the possibility of closure was raised or decided upon.

Of course none of this may happen. We may all get our subscriptions back, book buyers get their orders fulfilled and all creditors paid. Critically this would include pay out of any staff entitlements and any amounts due to Her Majesties Government. I mention that because in this country failure to do this is one of the prima facie proof’s of insolvent trading. Indeed, if the Aus Government dip into their funds to meet the mandatory staff payments they tend to get pretty mad at the director’s. I can’t think it is different in the UK.

Now clearly this has the makings of a classic liquidation. Everyone who has lost money, albeit even a few weeks advance subscription should write now, firstly to Companies’ house. Complain that you have been told the Company is in liquidation, that you have tried to ask for details from the company but received no answers and as the Liquidator seems not to have been appointed you have no way of registering any claim. Also nominate that as the owners of the company are major creditors and appointed the directors you are concerned with the progress of this apparent “liquidation” where other creditors may be being disadvantaged.

Just use the enquiries email enquiries@companies-house.gov.uk then if you get a reply ask for further investigation. If a few hundred are received quickly I would bet it will start a fire.

The company to quote is PSYCHIC PRESS (1995) LIMITED also quoting Company No. 02978126

I feel sure that this will be far more effective than contacting the SNU and will place any appointed Liquidator on notice.

I also note that our individual debts are of little value. If one lawyer was to step forward to act for one person he could accumulate debt. You can sell your debt to another for a small amount, I would nominate for us 20p paid to a charity, they then need you to provide various proofs of paying PN and can lodge a much larger value proof of debt seeking a place upon the Committee of Inspection (appointed from among the creditors to overview the process.)

It is important that a challenge is made to the appointment of SNU members onto this committee as well.

All in all if you all work together on this, protest to Companies House, to the SNU, to a liquidator and to ensure a powerful voice, in the inspection process, then the SNU will really wish they had sought an alternative course of action.

Somehow I think that they missed all of this, until you have been at close quarters with liquidators you really have no idea of what will transpire and how little control you have.

From what I have seen for the NEC not to have control may be a very scary experience. Additionally what position will some of the NEC be in if the liquidator does choose to pursue insolvent trading. Interesting points. If I was them I would stop the action and seek other avenues of escape from a difficult spot.

This may not be pretty, especially as is bound to happen at some time, the major Newspapers pick up the story. Just imagine the headlines - the SNU never saw it coming, even with all the AFC tutors at their disposal. Gee, I am sure the Sun would love the story. Let us hope that at the very last some form of sanity prevails because they must realise by now this is not going to just go away. Certainly I am sure it is just going to get worse for the New President and his NEC.

I wonder whether the market value of the Arthur Findlay College and its extensive grounds, located as they are, in an area regarded by some as being an English Mecca, has had any influence in this mysterious occurance?
Closure by a series of cuts - then sold- with the considerable proceeds being returned to the Arthur Findlay family?
Well maybe the last part certainly wont happen.

http://arthurfindlay.com/arthurs-will/
I am no legal eagle however there is a reference to the Psychic Press maybe some learned person might find an answer

I spoke this morning to Tony Ortzen, editor of Two Worlds, about a different matter.

During the course of our conversation, Tony said that he has conducted an extremely hard-hitting interview with new SNU president David Bruton.

Although he would not give details, Tony said that David gave very full, frank answers to the questions put to him... and had some very surprising news about Psychic News.

However, Tony would not be drawn further.

The September issue of Two Worlds will be out around the middle of next month.

If you would like to subscribe to Two Worlds please email Tony at: tortzen@globalnet.co.uk
with your name and address.

Two Worlds is not yet an online publication.

Of course the shame of this is, in the current circumstances no one else would be available for interview so Mr Bruton has the field. I have said already that he will have an answer to just about any eventuality and will present it with a great deal of conviction.

Really, to have balance, others need to be interviewed but I doubt anyone is in the position to speak in the current environment. On the basis of what has been seen and heard I suspect Mr Bruton's words will not just be accepted verbatim but with many pinches of salt. However, I also would feel that for any committed SNU person who wants to stay onside they will have to be the Gospel.

Sadly subscribing to Two Worlds by credit card is a less secure process than others around, so I am more reticent to do so, or go to the lengths of getting a Bank Cheque and sending it. I notice the web site is being improved so I can imagine a future position when as an overseas subscriber I may buy it.

It is interesting if you look at the problems outlined in the Liquidation.

I suppose Bruton and the NEC have a few alternatives they can use in the face of the protest and what must be a growing realisation that this is not going to be a simple matter.

They can brazen it out and liquidate PN, restating they felt it was a financial black hole. There appears little to justify this on the basis of the published offers of financial help.

They can do the above but sweeten it by saying that they wanted to restart an internal magazine but the funds and resouces available precluded the SNU supporting both so PN had to go. As an add on to this there is a track record that no in house publications have been succesful in any of the major organisations. I believe Via Veritas was the best previous effort by the SNU but that failed (Psypioneer has some reports about this in conjunction with its PN articles).

In either case, as a liquidation involves selling assets it is hard to see how they could ensure that PN would never arise again unless it was intended to take over the assets in exchange for their own debt. This would imply they expected the other creditors to fold their tents and walk away (or sweeten the deal with a little money).

Alternatively, with what I would guess to be one day left before they can act upon the Statement of Demand (which I do feel has to have been the legal vehicle to allow a liquidation, it is standard practice prior to a liquidators appointment) they can pull back and wait. They do not have to do it instantly, once the 28 days have passed they have the right to call in the liquidator at any time.

Maybe time to survey the mayhem that is potentially in play and come up with a cunning stunt in words straight out of Blackadder. This could be to acknowledge the protest and say they have decided to continue PN subject to financial assistance and a plan to resuscitate it by negotiation with the other parties who had been offering financial help but only for a period to assess financial viability. One could see other possibilities as well most of which would have to beat a liquidation.

Who knows what will happen but at this stage the only firm news was a liquidator would be appointed tommorrow. It is hard to believe that the SNU, once committed to an action, would pull back despite the overall consequences that may fall out from it. If they do I bet it would be spun very tightly in PR terms and make a fascinating read.

Whatever happens I think we should all watch with great interest especially following Z's comments about the Two Worlds Interviews.

I notice that the blame for PN's demise is laid on certain named individuals in the responses to Roy Stemman's article in Paranormal Review. To quote part from one contributor

http://paranormalreview.com/articles/20100721
"LSSNU
Judith Seeman & Ducan Gascoyne are the main players in getting rid of PN what an example of spirituality by the spirtual vice president who has not in her 1st year in that position has not givern any new ideas to the membership. Go back to Spain you are not wanted here."

Maybe this is Mr Bruton's let out - it was the previous President who did it not him. But then again, one must ask, as a Director of Psychic Press, Mr. Bruton could hardly have been unaware of what was being decided about the fate of PN and would surely have been involved in the decision making.

I am very concerned to read that Tony Ortzen is running an interview with David Bruton. With all the furore surrounding the legal issues of closing Psychic News, do you really think he is going to tell the truth about what has been going on? Why didn't Tony interview the Psychic News editor? Surely this would greater serve the public and answer some of the real questions? I know I shan't bother wasting my time reading it.

Inspiration wrote:I am very concerned to read that Tony Ortzen is running an interview with David Bruton. With all the furore surrounding the legal issues of closing Psychic News, do you really think he is going to tell the truth about what has been going on? Why didn't Tony interview the Psychic News editor? Surely this would greater serve the public and answer some of the real questions? I know I shan't bother wasting my time reading it.

Both the PN editor and Tony Ortzen have made their views known in the final issue of PN.

David Bruton, as the newly-elected President of the SNU, should also be given an opportunity to put his views across.

"audi alteram partem" - "hear the other side."

It embodies the concept that no person should be condemned unheard.

I believe in freedom of speech/expression not censorship or banning - no matter from which side.

BTW, Tony tells me that Sue Farrow (PN editor) is not giving any interviews at the present time.

[quote="hiorta"]I wonder whether the market value of the Arthur Findlay College and its extensive grounds, located as they are, in an area regarded by some as being an English Mecca, has had any influence in this mysterious occurance?
Closure by a series of cuts - then sold- with the considerable proceeds being returned to the Arthur Findlay family?
Well maybe the last part certainly wont happen.[/quote]




Thanks to hiorta for putting into words something that had long been a worry at the back of my mind, i.e. that the nearness of Stansted Airport puts Stansted Hall and its gardens (and all the fields round about) at risk from property developers. Even though there may not now be an imminent threat from a potential extra runway, airports generate a need for building space. Property developers are determined critters with keen noses, and some of them will have scented out Stansted Hall and grounds as a profitable opportunity. Wouldn't Stansted Hall make a nice hotel?

Eilis wrote:

hiorta wrote:I wonder whether the market value of the Arthur Findlay College and its extensive grounds, located as they are, in an area regarded by some as being an English Mecca, has had any influence in this mysterious occurance?
Closure by a series of cuts - then sold- with the considerable proceeds being returned to the Arthur Findlay family?
Well maybe the last part certainly wont happen.

Thanks to hiorta for putting into words something that had long been a worry at the back of my mind, i.e. that the nearness of Stansted Airport puts Stansted Hall and its gardens (and all the fields round about) at risk from property developers. Even though there may not now be an imminent threat from a potential extra runway, airports generate a need for building space. Property developers are determined critters with keen noses, and some of them will have scented out Stansted Hall and grounds as a profitable opportunity. Wouldn't Stansted Hall make a nice hotel?

This came up many times over the years when Gordon Higginson was President but he remained loyal to Arthur Findlay's wishes even through difficult financial circumstances,

Who is to say what will happen in the future?

I have posted information under a heading 'Psychic News - The Editor Speaks' but will also post it here. See below:

"Susan Farrow - Editor, Psychic News
To date I have made no public comment on the SNU's unilateral decision to wind up Psychic Press (1995) Ltd. and I do not propose to do so here. However, speculation abounds regarding the fate of Spiritualism's flagship newspaper, and I would like to thank Roy Stemman for his accurate and perceptive coverage of an issue which is a source of concern to Spiritualists worldwide, not least the editorial team of Psychic News.

My sole reason for posting today is to confirm that an offer has been made to the SNU to purchase Psychic News with a view to making it independent again for the first time in many years. As editor, I wholeheartedly support this offer. The dearest wish of Maurice Barbanell (a minister of the SNU) was that Psychic News would be a vehicle for the truth of Spiritualism itself and not allied to any individual group within the Spiritualist movement. Negotiations between the two parties will take place shortly and I ask all who have PN's future at heart to send out thoughts that guidance and inspiration will be given to all involved in those negotiations."

This and other comments of relevance can be found on Roy Stemmans website: www.paranormalreview.com/

Hi Z,

I note your comments about the impending interview of David Bruton in Two Worlds. I note that I said it was sad that probably another view could not be obtained but I take it Tony Ortzen has approached people like the editor of PN for an interview?

Would not that ensure the September issue is a balanced publication?

Inspiration wrote:I am very concerned to read that Tony Ortzen is running an interview with David Bruton. With all the furore surrounding the legal issues of closing Psychic News, do you really think he is going to tell the truth about what has been going on? Why didn't Tony interview the Psychic News editor? Surely this would greater serve the public and answer some of the real questions? I know I shan't bother wasting my time reading it.

Hi Inspiration,

I tend to agree with you. It is somewhat puzzling to see that apparently Tony Otzen has interviewed David Bruton but not apparently the Editor of Psychic News.

While it might be that the editor is not in a position to speak 'on the record' at the present time, it is rather surprising to think that Ortzon may not have bothered to try. A one sided version of what has occurred is surely a less than satisfactory approach in such an important story.

Z wrote:

Both the PN editor and Tony Ortzen have made their views known in the final issue of PN.

Well I for one would beg to differ on this remark. I truly doubt that the editor of PN was in any position to really make known their views in the final issue of PN, especially given it was an edition which was going to be subject to the approval of the SNU.

[quote="zerdiniBTW, Tony tells me that Sue Farrow (PN editor) is not giving any interviews at the present time.[/quote]

Oh, is that so? And did Mr Ortzen ask the editor of Psychic News for an interview and she declined?