This post as initially begun early this morning:
Tuesday, November 19, 2013
THIS POST UPDATED AT 4:10 PM TUESDAY, after hearing from two different sources. (see “UPDATES 1 and 2”, below)
"Further commentary on what went down vis a vis Service Point USA"
Following a phone call I received this morning from a person who had very recent communications with someone at SPS’s HQ’s in Spain, I decided to do another Spanish-to-English translation (again, using Google-Translate) to see if I could make any further sense out of what went down with respect to the shuttering of SP USA.
Below, you will find three different links to translations of three of the paragraphs that appeared in the Letter that SPS (the parent company) filed with the Spanish stock exchange and with Spain’s S.E.C.
Blog Publisher’s comments:
Based on a re-reading of the translated paragraphs and on information that was shared with me on the phone, these are “my questions” about SPS and SP USA:
Did SPS in Spain make the decision, and give instructions, to shut down SP USA?
I think the answer to this question is “no.” And, I also think that SPS did not have any knowledge that a decision had been made, and orders given, to shut down SP USA. Apparently, SPS found out after the fact that SP USA had been shut down.
Did the administrator of the U.K.-based Holding company (the administrator of GPP Capital Plc) make the decision to, and give orders to, shut down SP USA?
I think the answer to this question is “yes.”
What do the initials, GPP, stand for?
I think they stand for “Gruppo Picking Pack”, which was the name of the parent company (of SPS operations) prior to GPP changing its name to SPS.
If the administrator of GPP Capital Plc gave instructions to shut down SP USA, and so without SPS’s knowledge, did that decision not substantially impair SPS’s value? And, if the answer to that is “yes”, then will SPS end up pursuing a claim against the administrator - - and possibly the lending group, since the administrator was, apparently, acting on behalf of the lending group?
We’ll have to wait and see!
UPDATE 1, posted at 4:10 pm….
An e-mail I received this afternoon said this:
That, apparently, E&Y, the administrator of the holding company that controlled SP USA did not make the decision to shut down SP USA, nor did it give instructions to shut down SP USA.
We already know, via an e-mail we saw from someone at SPS (in Spain), that SPS in Spain (the parent company) did not make the decision to shut down SP USA, nor did SPS give instructions to shut down SP USA, and that SPS did not even know that SP USA was shut down - until someone brought that fact to their attention.
It was also stated, by a source I cannot reveal, that the decision to shut down SP USA came from SP USA management.
Thoroughly fantastic, sensational, unbelievable …. and I'm having great difficulty coming up with further words to describe ….. what happened to SP USA.
If E&Y (or, for that matter, anyone else) is now in the process of trying to preserve SP USA’s value, well, all I can say is, “good luck”.
On a related note, there’s apparently a new development soon to take place at SP UK. Take a look at this document (link to document):
UPDATE 2, posted at 9:45 pm….
What I forgot to mention in the first update is that I previously blogged about, and provided links to, SP USA’s filings with the Mass Department of Corporations, but, since in UPDATE 1 I failed to provide links to documents, I’m going to do that once again. Like now!
This first link takes you to the “Business Entity Summary”:
This second link takes you to SP USA’s most recent (Mass Corp) Annual Report:
If you look at these filings, you will see a bunch of different names. All but two of those names are people at SPS (the parent co) in Spain. The two that are not are a) the "former" COO, Managing Director of SP USA (Kevin Eyers) and b) the "Secretary" of the company (Mr. Snyder, and he's with a law firm in downtown Boston). I seriously doubt that the attorney (Mr. Snyder) even knew anything about what happened until after the fact (it's likely that he first learned about SP USA's shut down when he read about it in the Boston Business Journal, if he reads the Business Journal. I did send him an e-mail, but I don't expect a response.) And, if he did not consent to the decision to shut down SP USA, that kinda leaves it up to the one remaining person. As I said, incredible!!!!!!!!!!
Posted by Joel Salus at 8:56 AM