Former principal shirt sponsor of rugby region the Scarlets, Juno Moneta Group, collapsed into administration owing creditors nearly £12m it can be revealed.
The Cardiff-based holding company, founded and chaired by Claire Louise Thomas (formerly known as Louise O’ Halloran) and under which operated a number of financial and professional advisory firms including its regulated independent financial advisory firm Juno Moneta Management Capital, was put into administration over the summer by it main creditor in Blackwood-based Contrad.
Contrad, owned by Paul O’ Connor, had provided the group with a £10.3m fixed charge loan to support its acquisition strategy back in 2018.
According to proposals to creditors, lodged with Companies House, from joint administrators Roderick Butcher and Richard Goodwin of Birmingham-based corporate recovery Butcher Woods, Juno Moneta also has unsecured creditors, totalling 36, who are collectively owed £1.6m.
They include: Swansea-based GCNG Consultancy £346,027; the Blake Consortium £318,254, Jardine Norton £301,31, HM Revenue & Customs £238,646 and law firm Eversheds Sutherland £27.000.
Due to the costs associated with the administration process, unsecured creditors are unlikely to receive anything.
In the proposals to creditors Mr Butcher also confirms that he has received claims from two additional creditors that were not included in the statement of affairs for £520,922 and £1.3m respectively. He adds: “I am taking steps to establish the legality of the claims.”
The £520,922 claim is understood to relate to the Scarlets and its shirt sponsorship deal with Juno Moneta Group.
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Mrs Thomas stood down from the board of the Scarlets in January this year, having joined following the sponsorship deal in 2018. The Scarlets declined to comment on any creditor position with Juno Moneta.
However, the shirt deal, which was due to run for three years, has been terminated with a season remaining following the administration. Playing in France last week against Toulon, Oil4Wales appeared as the principal sponsor on the jerseys of the Scarlet players. The region is expected to make an announcement on a shirt sponsor next week.
Juno Moneta also had a sponsorship deal with football club Cardiff City for its executive lounge at the Cardiff City Stadium, which was branded the Juno Moneta Lounge.
That agreement, due to the administration, has been terminated with one season remaining.
In a statement the club said: “It is the case that our commercial partnership with Juno Moneta has ceased a year ahead of contract end, due to their circumstances. We will be going to market in respect of sponsorship for the Juno Moneta lounge (as it was called) at the Cardiff City Stadium."
Contrad will receive proceeds from the £650,000 sale, concluded earlier this month, of Plymouth-based independent financial advisory firm Rainbird which Juno Moneta acquired the 100% equity interest in back in 2017.
The client book of Juno Moneta Capital Management has been acquired by Alternative Investment Market listed wealth management firm AHF for a nominal £1. If the transferred funds are maintained then in three years time some £807,363 could be payable to Contrad, although there is the prospect of competing claims to any earn out.
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On the demise of Juno Moneta Group Mr Butcher, in the proposals to creditors document, says:“In July Contrad were approached for further funding and became aware of issues with the company and Juno Moneta Capital Management with the Financial Conduct Authority. Contrad declined to provide further funding and issued a demand for repayment of funds.
“The directors have attributed the insolvency of the company due to the Covid-19 pandemic reducing face to face contact with clients along with a steep decline in revenue. Further, the directors have stated the breakdown in the relationship with Contrad whilst there was a need for further investment also contributed to the current position.”
The report also highlights overdrawn directors loan accounts for Mrs Thomas and her former husband and fellow director of Juno Moneta Group Neil O’ Halloran, of £117,405 and £126,006 respectively.
Mr Butcher says: “I have issued demands for repayment of these sums and instructed Blake Morgan solicitors to commence legal action against the directors for repayment.”