Car Parks Update - July 2021

Best International Group Ltd has received the following communication from EWS LLP, in relation to assets in the UAE, which may be of interest to you.

CONTENT OF COMMUNICATION RECEIVED FROM EWS LLP

‘Settlement of 1st UAE Property into the BAM Trust

 As Joint Trustee of the BAM Trust, I am pleased to report that the property known as ‘Citadel’  in Dubai was settled into the BAM Trust on the 8 July 2021. This property comprises some 80 car park spaces and an office. This is the first of the properties to have been recovered in the UAE and has been achieved ahead of the conclusion of the civil action establishing the debt (the UAE Court Case) which you may be aware is also approaching its conclusion. Thank you to all of those who helped achieve this early result, especially those at Best International, BroadLeaf and their contacts in the UAE.

I will be looking to arrange the appointment of an appropriate agent in the UAE to maximise the value of the property and ideally to seek a sale of the property at a fair market value.

Once I receive any proceeds from the rental or sale of the property, net of transactional costs and agent fees, I will be required to allocate the proceeds to beneficiaries under the terms of the Trust Deed. As this asset represents property that is related to car parks and also relevant to ABC, I expect that I will need to make an assessment of the allocation of proceeds to the Car Park Owners within the Trust and the ABC Companies within the Trust, and then onward distribution to their relevant beneficiaries. While this is extremely encouraging, and evidence that the years of effort in the UAE is beginning to bear fruit, I must caution beneficiaries that in the context of the entire UAE action, this is a relatively small asset. I have yet to establish a market price for the sale, but once the costs are taken into account it is unlikely that any significant funds will be distributed to investor beneficiaries and it is impossible at this point to establish on what date any distribution will take place. It is perhaps best to think of this important step as the first in the process of potential recovery for investors, creditors and beneficiaries.

The office is one of the named secured assets for the benefit of ABC Alphas Business Centres UK Limited so any net proceeds from the serviced office element of the property will be passed over to Mazars for the benefit of the creditors they are representing. Any proceeds from the sale or rental of car park spaces will be apportioned among Car Park Owners. Included is a small ‘over-recovery’ with a small number of car park spaces being settled into the Trust that were not expected. These will be allocated to the ‘General Assets’ pot which will be allocated according to the Trust Deed when possible.

While I am pleased to bring you this positive news, I would encourage you not to inundate the offices of Mazars, Best or EWS with questions about the timing and quantum of payments as it is impossible right now to give meaningful answers. I will communicate progress in respect of Citadel specifically, and other assets at the appropriate time, and must ask you to continue to be patient. However, this is a positive first step in progress and I am pleased to be able to report this to investors, creditors and beneficiaries.

Mark Tailby Joint Trustee’