In October 2010, renown Cayman contracting company Hadsphaltic  went into liquidation with debts exceeding $2 million. What looked like a reasonably simple task, however, has led to a story worthy of a John Grisham thriller.

Court-appointed liquidator Chris Johnson, confronting the monumental task of sorting out the affairs of Hadsphaltic parent Oxford Ventures Ltd, — as well as 40-odd subsidiaries in seven countries – appeared on BBC’s Panorama programme about Lord Ashcroft, the Tory billionaire, describing “a harassing and difficult year”.

In recent years, Hadsphaltic had been losing money on poorly negotiated contracts, he said. In fact, had Oxford and Johnston International Ltd., a sister company operating in the Turks and Caicos Islands, paid their debts to Hadsphaltic, all would have
 been well.

However when working in Turks and Caicos capital and Oxford Ventures home Providenciales, Mr Johnson quickly ascertained that disaster had struck: “Two computer servers had been deliberately destroyed and company records had suddenly disappeared. For example”, he said, “less than 5% of the accounting records have so far been recovered.”

Accustomed to such challenges, Mr Johnson set out to reconstruct the records as far as possible, only to find a conspiracy of silence from everyone connected to the Oxford group. Directors of British Caribbean Bank (BCB), established in both Belize and Providenciales, refused to address any enquiries as did Oxford CEO Allan Forrest, CFO Shaun Breeze, the auditors and Oxford’s own lawyers.

BCB Holdings Ltd, owner of both banks until recently, in which Lord Ashcroft is 70% shareholder, owns one of the law firms, which turns out to be an unlicensed BVI company whose directors are hidden by confidentiality laws. Nonetheless, Mr Johnson has sought to obtain vital information through third parties and governmental agencies, while confirming that the demise of both Oxford and Hadsphaltic is almost entirely due to the similar demise of Johnston, described by the liquidator as “the big black hole”.

Valuable assets have been realised since 2006, including the prestigious Fort George Radisson Hotel in Belize, adjoining the house occupied by Lord Ashcroft, but owned by The Villa Hotel Ltd,  curiously also owned by Oxford until 2007.

Mr Forrest, a former director of the Villa Hotel, asked by Mr Johnson who had bought it in 2007, was unable to recall any names. The hotel manager drew a similar blank, confirming Mr Johnson’s theory of a conspiracy of silence.

“Never mind the hotel sale,” he said: “What about the $22 million loan to the hotel from Oxford? In which hole did that go?”

Hotel lawyers went similarly quiet under questioning.

Stranger still is the appearances of Peter Gaze as a director of the hotel company. By coincidence, said Mr Johnson, Mr Gaze is also a director of BCB Holdings. The trail has led the liquidator to other assets in Belize that mysteriously disappeared into newly incorporated BVI entities, ownership unknown.

Back in Providenciales, other assets met a similar fate until the cupboard was finally bare, leaving more than 100 employees unpaid and out of work in Cayman. In Providenciales and Belize another three Oxford companies closed.

At that stage the bank appointed receiver and Ashcroft confidante Keith Arnold. Coincidentally, Mr Arnold is a former director of
BCB Holdings.

As enquiries have continued Mr Johnson has zeroed in on the Providenciales bank, which has generously turned over some 36 bank statements after Mr Johnson finally obtained an amended court order nearly 16 months after the liquidation of Oxford.

“This is an insult,” Mr Johnson said. “A bank must treat its clients with respect, and certainly must assist court-appointed liquidators.”

Mr Johnson said he is unlikely to give up, focusing on the CEO and CFO, while confronting more uncooperative lawyers.

“It makes an interesting story, of course, but I am far from happy,” he said. “It is simply quite incredible how various solicitors and accountants have behaved. In realising assets for the benefit of creditors, I expect cooperation, not resistance. Strange, how I keep humming Simon & Garfunkel’s ‘Sounds of Silence’ when working on this engagement.”