BTU Holdings Company and its Subsidiaries - Consolidated Financial Statements - 31 December 2004

More information from the Hayat litigation docket.  Almazeedi provided the financial statements for 2004 to Abdulmohsen Hayat sometime in 2006.  Hayat, in his various affidavits, claims not to have received any more current or relevant information regarding BTU Holdings Company.  One can only assume that the liquidator will have a clearer picture at the upcoming first creditors meeting. 

Principal BTU HOLDINGS COMPANY subsidiaries
BTU Power Management Company (Caymans)  100% owned - Management Company
BTU Ventures, Inc. (Delaware) 100% owned - Management Company

 

BTU HOLDINGS COMPANY
(In Official Liquidation)
(“The Company”)
The Companies Law
Notice of Creditors’ Meeting (O.8, R.2)
Grand Court Cause No. 35 of 2011
Registration No. 125586

NOTICE IS HEREBY GIVEN THAT the first meeting of the creditors of the above Company will be held by telephone conference from the offices of KPMG, 2nd Floor, Century Yard, Cricket Square, Grand Cayman, Cayman Islands at 10:00am Cayman time on 13th April 2011, on international access number 1(281) 319-9872 or US access number 1(866) 212-4398, participant passcode: 5302584637#

link: BTU Holdings Company and it Subsidiaries - Consolidated Financial Statements 31 December 2004
link: Kenny Leung (BTU Ventures controller) Email to "BTU" and Draft Letter to Evolvence

BTU HOLDINGS COMPANY was placed in VOLUNTARY LIQUIDATION on January 27, 2011. The Grand Court of the Cayman Islands issued an Order (on February 24, 2011) for the liquidation to be continued under the Supervision of the Court because BTU HOLDINGS COMPANY could not show that it was solvent.

from E&Y website: 2006 Entrepreneur of the Year

Almazeedi's "Founder's Statement" in the new btupower.com Website 

sometime mid-February 2011

"As the BTU Companies continue to successfully execute our business plan, I am pleased to update you on recent and positive developments in our efforts to protect the value of our assets for the benefit of all our investors."

• BTU HOLDINGS COMPANY went into Voluntary Liquidation on January 27, 2011  [see page 335]

28 days later...

• BTU HOLDINGS COMPANY's liquidation was Ordered to continue under the Supervision of the Court in accordance with Section 124 of the Companies Law (2010 Revision) on February 24, 2011 (28 days after filing for Voluntary Liquidation).  [see page 470]

Observation

Based on the excerpt form the Cayman Island Companies Law, if BTU HOLDINGS COMPANY could have shown that it was SOLVENT, it could have continued under Voluntary Liquidation


Cayman Islands: Companies Law (2010) Revision
124. (1) Where a company is being wound up voluntarily its liquidator shall apply to the Court for an order that the liquidation continue under the supervision of the Court unless, within twenty-eight days of the commencement of the liquidation, the directors have signed a declaration of solvency in the prescribed form in accordance with subsection (2).

Conclusion

The "parent" company of BTU Ventures Inc., BTU Power Management, BTU Power Company, etc. is "broke."  This little bit of information did not make it's way into the Founder's Statement for btupowercompany.com (perhaps Almazeedi will update that website soon.  Maybe he'll return his E&Y Entrepreneur of the Year award as well.)

So, what are these "recent and positive developments" that he was talking about in btupower.com - maybe he was talking about them from HIS perspective... they are positive for HIM.

BTU HOLDINGS COMPANY, the "parent" company of BTU Ventures Inc., BTU Power Management, BTU Power Company, etc. is IN OFFICIAL LIQUIDATION (see post immediately below for a corporate structure diagram of the BTU Group)

link: Cayman Islands Gazette - Extraordinary Gazette Issue 26 - Commercial Liquidation Notices - Tuesday, 29 March 2011 [see page 3]

BTU HOLDINGS COMPANY 

(In Official Liquidation) 

(“The Company”) 

The Companies Law 

Notice of Creditors’ Meeting (O.8, R.2) 

Grand Court Cause No. 35 of 2011 

Registration No. 125586 

NOTICE IS HEREBY GIVEN THAT the first meeting of the creditors of the above Company will be held by telephone conference from the offices of KPMG, 2nd Floor, Century Yard, Cricket Square, Grand Cayman, Cayman Islands at 10:00am Cayman time on 13th April 2011, on international access number 1(281) 319-9872 or US access number 1(866) 212-4398, participant passcode: 5302584637#.

In order to be eligible to attend this meeting each creditor is required to have submitted a Proof of Debt and have sent written notice of his/her intention to attend to the Joint Official Liquidators, contact Lea Kuflik on lkuflik@kpmg.ky by close of business on 11th April 2011. Should any creditor wish to submit a claim against the Company, please email Lea Kuflik on the above email address to receive a Proof of Debt Form in accordance with the Companies Winding Up Rules 2010.

Dated this 28th day of March 2011.

S WHICKER 

Joint Official Liquidator 

The address of the Official Liquidators is: PO Box 493, Grand Cayman KY1-1106 Cayman Islands
Contact for enquiries:
Ms Lea Kuflik
Telephone: 345-815-2601
Facsimile: 345-949-7164
Email: lkuflik@kpmg.ky

Address for service:
P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands
Telephone: 345-949-4800
Facsimile: 345-949-7164

link: Gazette Office - Cayman Islands Government

link: BTU HOLDINGS COMPANY - Certificate of Incorporation
link: BTU HOLDINGS COMPANY - Register of Members
link: BTU HOLDINGS COMPANY - Register of Directors and Officers

from the Hayat litigation Appeals Court decision

FN1. According to Hayat's affidavit '[t]he BTU group companies are a fully integrated whole with each serving BTU Holdings.' Subsidiaries include BTU Power Company (BTU Power), a Cayman Islands corporation controlled by BTU Power Management (Power Management), a Cayman Islands corporation with its principal offices in the United Arab Emirates. Al-Mazeedi is the sole director of Power Management. BTU Ventures provides services to BTU Power on a contract basis on behalf of BTU Holdings and is incorporated under the laws of Delaware with its principal place of business in Massachusetts.

Detailed BTU Group structure. Also, Wael Al-Mazeedi's and Mitsue Oishi's multitude of companies that seemingly do the same thing: The "specious" Track Record

The "Original BTU"

The following is a detailed "BTU" structure chart based on information available in the public domain.  It has been distilled from court filings, BTU Power Company Offering Memorandum, post in this blog (which are based on public domain information), and multiple websites.

Hopefully it will help navigate the multitude of disparate operating and shell companies that are part of Almazeedi's "business empire." 

The "BTU" in the following structure chart is the "original" one.  That is, it is the one where Hayat is 44% owner.  As Hayat himself explains in his Verified Amended Complaint:

"...Hayat has learned that certain entities — also named BTU and related to the energy industry — were formed by Defendants without Hayat's knowledge. In violation of the Defendants' duties of loyalty to Hayat and Holdings, such entities are not owned or controlled by the parent company, Holdings, and are not managed by entities in which Holdings has any ownership stake."

*** CLICK CHART to Expand to FULL Size ***

More on the "Other BTU"

At some point Al-Mazeedi began to form other entities under the BTU name that have no connection to the "Original BTU" (other than the fact that, on paper, Almazeedi owns shares in the separate entities).  He refers to that hodgepodge of BTU entities as "affiliates" in most of his public pronouncements.  On that basis, if someone owns shares in General Electric and Walmart, they could claim that those two completely separate companies are "affiliates" as well.

As Hayat further explains in his Verified Amended Complaint, "After freezing out Hayat, Al-Mazeedi and Oishi began to form their own parallel set of companies that had no subsidiary relationship to Holdings, to carry out the business of the BTU Group."

• BTU Industries, Ltd. (Caymans) 
• BTU Industries Holdings Limited (Cayman) 
• BTU Industries Holdings (USA) Inc. (Delaware)

"Hayat does not hold shares in any of these entities."

The "Other Almazeedi and Oishi Companies"

Although they are self-proclaimed "major industry players" not much information is available regarding the newest set of companies formed by Al-Mazeedi and Oishi, and headed principally by Al-Mazeedi.  The only descriptive information available on the web consists almost exclusively of press releases that undoubtedly originate with Al-Mazeedi.

• QGEN Ltd. (Caymans)
• QGEN (USA), Inc. (Delaware)
• The only external "news" link in QGEN's website references the QGEN website exclusively to support its statements.  Seemingly NO independent research or reporting was done in the linked article.
• FATE Consortium 
• No idea if this is a real corporate entity.  At least in Massachusetts it isn't - it's not registered with the Massachusetts Secretary of the Commonwealth.

The "Track Record" and a Conclusion

This topic has already been discussed at length elsewhere in the blog, particularly in the section titled "What is QGEN."  Al-Mazeedi makes numerous claims regarding the "Track Record" of QGEN (recently) and BTU Industries (previously).  It's pretty clear by now that the only entity that owns ownership interest in power plants of any kind, hybrid or conventional, is BTU Power Company.  However, you can not draw a direct CONNECTION whatsoever between BTU Power Company and any of the other Almazeedi and Oishi companies.

Information Sources

Material Extracts from BPU Power Company Offering Memorandum

BTU structure chart sources list (references from court filings)

CPC website

TAPCO website
BTU Group website

Wael Al-Mazeedi, Mitsue Oishi, and BTU Holdings Company lose another round against Abdulmohsen Hayat - complete Memorandum and Order issued on January 10, 2011 re: their Motion to Dismiss Hayat's Amended Complaint.

The following is the COMPLETE memorandum and order issued (January 10, 2011) by the trial judge in the Hayat vs. Al-Mazeedi, Oishi, and BTU Holdings Company lawsuit.  It's very informative reading for anybody wanting to get a better handle on the genesis of BTU's litigious "track record."

ABDULMOHSEN HAYAT, on his behalf and on behalf of all other shareholders of BTU HOLDINGS COMPANY and individually

vs.

WAEL AL-MAZEEDI, MITSUE OISHI, and BTU HOLDINGS COMPANY

1. Breach of Fiduciary Duty (Hayat v. Al-Mazeedi and Oishi)
2. Breach of Contract (Hayat v. Al-Mazeedi, Oishi, and Holdings)
3. Diversion of Corporate Opportunity (Hayat on behalf of Holdings v. Al-Mazeedi and Oishi)
4. Claim for Declaratory Judgment under M.G.L. c. 231A § 1 (Hayat v. Al-Mazeedi, Oishi, and Holdings)

link: Hayat Verified Amended Complaint

BTU Holdings Company, Wael Al-Mazeedi, and Mitsue OIshi filed a Motion to Dismiss Hayat's Verified Amended Complaint. The trial court judge DENIED their Motion to Dismiss on January 10, 2011 (except for Count 2, as to Al-Mazeedi and Oishi but NOT Holdings).

link: Memorandum and Order on Defendants' Motion to Dismiss Verified Amended Complaint

The "background" of the lawsuit as included in the Hayat Verified Amended Complaint as well as the relevant extracts regarding the specific detail of each of the counts above follows:

(READ 1st) Janary 11, 2011 Middlesex Superior Court decision re: BTU's motion to dismiss Hayat's amended complaint

Almazeedi's and Oishi's "frozen-out" partner (Hayat) makes a breakthrough in Middlesex Superior Court (Massachusetts) on January 11, 2011.

BTU (represented principally, of course, by WilmerHale) lost again. They filed a motion to dismiss Hayat's Amended Complaint. The trial court judge denied their Motion to Dismiss on 1/11/11 (except for Count II, as to Al-Mazeedi and Oishi but NOT Holdings). Bottom line, Hayat (44% owner) will finally "get his day in court" and have the chance to find out EVERYTHING that's been going on inside BTU since it was formed in 2002.

(READ 2nd) Wael Al-Mazeedi, Mitsue Oishi, BTU Holdings Company: The claims related to the freeze-out of Abdulmohsen Hayat

The following excerpts are from the Amended Complaint filed by Abdulmohsen Hayat on April 15, 2010.  As discussed above, the trial court judge issued a decision on January 11, 2011.


"Background" as included in the Hayat Amended Complaint

This is an action arising from a freeze-out in a closely-held corporation, also known as a "quasi-partnership." The Plaintiff, Abdul Mohsen Hayat ("Hayat") owns 44 percent of the stock of BTU Holdings Company ("Holdings"). The husband-and-wife Defendants own the remaining 56 percent of the stock of Holdings. For the past several years, the Defendants have denied Hayat access to corporate books and reports, failed to pay an agreed-upon monthly sum, failed to distribute dividends, and usurped corporate opportunities for themselves. The Defendants have also deprived Hayat of all rights and privileges arising from Hayat's ownership stake, all in violation of their fiduciary duties to Hayat and to Holdings.

Hayat's claims are included immediately below:

Evolvence and the Hayat Litigation - consequential contradictions in Wael Al-Mazeedi's statements and actions - re: Mr. Khaled Al Muhairy

An interesting dichotomy is seemingly at work regarding the impetus for Wael Al-Mazeedi's actions vis-à-vis the litigation with Abdulmohsen Hayat. At the very least, some interesting questions are raised by statements and disclosures made in the various documents discussed below.

BTU and WilmerHale fight to keep Hayat's litigation out of US Courts: Appeals Court decision regarding Original Hayat Complaint

MEMORANDUM AND ORDER PURSUANT TO RULE 1:28

Abdulmohsen Hayat, a resident of Kuwait, filed a complaint in Superior Court against his former business coventurers, Wael Al-Mazeedi and Mitsue Oishi, residents of Massachusetts, and BTU Holdings Company (BTU Holdings).  Hayat appeals from a judgement dismissing his complaint on forum non conveniens grounds.  We reverse.

Link: Appeals Court Memorandum and Order Pursuant to Rule 1:28

Appeals Court - Panel Cases

Link: Case Docket for ABDULMOHSEN HAYAT vs. WAEL AL-MAZEEDI & others (2008-P-1368)

Supreme Judicial Court for the Commonwealth

Link: Case Docket for ABDULMOHSEN HAYAT vs. WAEL AL-MAZEEDI & others FAR-18270

Al-Mazeedi and WilmerHale (and/or Maples and Calder): presenting the "truth" to US Courts

The English language is tremendously direct, and at the same time very nuanced, so that you can say nothing and appear to be saying a lot at the same time:

BACKGROUND

AL-MAZEEDI

"The Board of Directors has approved, and I am compensated, $440,000 annually..." [1st Al-Mazeedi Affidavit, Paragraph 15(a)]

Wael Al-Mazeedi tells the Court in his affidavit that Al-Mazeedi the "individual" or "shareholder" really doesn't have anything to do with the determination of his compensation:

"... I have not, either in my capacity as an individual or shareholder, taken or caused BTU Holdings to compensate me unreasonably or otherwise." [1st Al-Mazeedi Affidavit, Paragraph 15(c)]

THE COURT
In the MEMORANDUM AND ORDER PURSUANT TO RULE 1:28 in the Hayat litigation the Court establishes that Al-Mazeedi and Oishi are the ONLY directors of BTU Holdings.

• "Al-Mazeedi and Oishi are the directors of BTU Holdings."
• "No subsidiary in the BTU Group has an independent board and only Al-Mazeedi and Oishi make policy and substantive decisions."