Following document and phone negotiations through a US broker company (Vail Corporation Inc. Http://www.vailcapital.com) Jumpjet Airlines Limited of Wellington, New Zealand received a Formal Invitation on the 20 June to personally deliver a business presentation for company capitalisation.
The invitation was from European Capital Investors (ECI) of Luxemburg via a holding company in Makati City, Philippines. The Jumpjet Managing Director was to undertake travel to Makati City and be accommodated in the Shangri La Hotel at own expense.
The purpose of this considerably expensive exercise was to enter into negotiations for capitalisation of the Jumpjet companies to advance to revenue operations. The dealings involved three days of negotiations and two days of international travel.
The first day of presentation was undertaken on a coffee table by the direction of the CEO Bertus Siekmeyer, in a Hotel with the availability of an extensive network of conference rooms. The Business Plan and associated material was presented and delivered.
The coffee table conferencing continued over the next few days. It became evident the there was no serious interest in the Jumpjet project from day one. However, there was an offer made for 60% of the company. Jumpjet Airlines Limited was unable to accept these dealings because of a legal foreign ownership limit of 49%. This figure was known to the CEO and ECI Holdings Corporation prior to the Jumpjet Managing Director's departure from New Zealand.
Further negotiations continued following the Jumpjet MD's return to New Zealand to attempt a way around the offer. Finally, these dishonourable negotiations closed and the Intellectual Property was requested to be returned under a signed Confidentiality Agreement. This request was deliberately rejected and the property was not returned.
Informal litigation was undertaken and ECI continued to breech the CA (NDA) agreement until legal action appeared imminent. They then offered to deliver the property to a nominated Makati City law office whilst continuing to refuse return to the Jumpjet company as requested under the contract.
These strategies caused Jumpjet to abandon attempts due to the cost and continual frustration. ECI still hold the Jumpjet property today.
The advice to companies seeking capital is to steer well clear of both of these companies due to their low integrity and unprincipled behaviour. A truly exploitive and negative experience.
Nick
Wellington
New Zealand
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