Collapsed payments unicorn Powa Technologies will likely leave at least £110 million $160.7 million of debts unpaid, according to an analysis of documents by BI.New documents filed with Companies House show former management expect just £1 million to be recovered from the business, which was once valued at £1.8 billion.That will barely dent the huge loans taken on by the business, not to mention the £14 million of trading debts, and £1 million owed to UK staff.
Powa raised more than $200 million £136 million in debt and equity funding over 3 years.READ: Inside the crash of London's $2.7 billion unicorn PowaThe new documents also shed light on Powa's spending, showing the company:ran up debts of over £150,000 with its PR company;owed almost £50,000 to the Twickenham rugby stadium and Rugby's governing body;and ran up debts of at least £4.7 million with mobile developers.So-called "Statement of Affairs" documents prepared by Powa's management after administrators were appointed, estimate how much the business is theoretically worth, how much money can realistically be recovered, and how much debt the company owes.Documents have been filed for both Powa Technologies Group, the overall holding company which raised money, and UK trading company Powa Technologies Ltd, which owned the bulk of the technology and conducted business.The document for the group company shows that, when intergroup loans and internal business are discounted, management expects £137.25 million of debts to be left unpaid.
The list of Powa's trading creditors sheds some light on what the business was spending money on:Office space: Powa owed a combined £3.9 million to various subsidiaries of temporary office space provider Regus around the world — from Jakarta to Milan.
Flame represented Powa in the UK but a source close to Flame told BI that the company's remit was extended globally in October last year.That more or less stacks up with my analysis of what Powa likely spent all its money on.The documents are believed to have been prepared by Powa's then CFO Steven Taylor and were signed off by Powa's former board, including founder and CEO Dan Wagner, and administrators Deloitte.The bulk of the £1 million former management expects Deloitte to be able to recover from the business comes from selling off stock held by the company, as well as office furnishings.
"He also argued that much of the Wellington debt, including the £67 million in unsecured shareholder loans, "should be discounted because they were investments rather than trading creditors and the two things are very different.
Administrators Deloitte, Boston-based Wellington Management, and Flame PR all declined to comment on BI's figures.SEE ALSO: Topless dancers, champagne, and David Bowie: Inside the crash of London's $2.7 billion unicorn PowaSEE ALSO: There's a huge unanswered question in the collapse of Powa Technologies — where did the money go?SEE ALSO: The autopsy on the collapse of $2.7 billion Powa Technologies is out — here are the key pointsNOW WATCH: Here s the one affordable habit ultra-successful people shareLoading video...