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Keydata chief exec loaned millions to Elias

Keydata founder Stewart Ford personally loaned millions of pounds to David Elias months before the firm was placed into administration.

According to court documents, Ford injected £500,000 into Netherlands based PolymerVision Limited and entered into a facility agreement in February this year in order to purchase all its assets and undertakings.

PVL was established in November 2006 as a joint venture for the development of technology relating to rollable displays.

It became a joint venture vehicle as a result of a subscription and shareholders agreement in December 2006 made between Technology Capital SA (TCSA), PVL and Koninklijke Philips Electronics NV.

TCSA, which is a Luxembourg company, was – and is – the wholly owned subsidiary of Malaysian-based BWT Holdings Limited which was controlled by David Elias.

According to the court documents, Ford had advanced £2m and the value of a bond expressed to be worth £1.2m to Elias in October 2008.

The documents show that by December 2008, Elias was in need of further money which resulted in a further advance by Ford of £0.6m.

They say Ford advanced a further £200,000 in February and £400,000 in March with these advances totalling in excess of £1m.

A High Court case was held in March this year, with litigation actioned as a result of the “parlous financial state of PVL” and Ford’s concern, having advanced “substantial monies” to the firm.

In the document Ford is quoted saying he had known Mr Elias for many years and that he had been the victim of huge financial losses as a result of what he described as his “misdealings”.

Keydata says it is an “innocent victim” after administrator PwC confirmed £103m invested in Keydata plans through Elias-controlled Luxembourg investment vehicle SLS Capital appear to be missing.

PwC says information suggests the assets have been liquidated and “may have been misappropriated”.

Income from capital invested in Keydata plans with SLS Capital had not been paid since October 2008 but the income shortfall to investors had been filled by Keydata’s own corporate funds.

The firm says directors only became aware in June that the underlying assets of SLS appear to have been liquidated.

In a statement from directors on June 30, Keydata said: “Like a number of other UK distributors of structured products, Keydata was only a distributor of the SLS bonds and is not and never has been connected in any way with SLS or its owners or managers.”

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