Concha's app investment at risk

6th Sep 2013 08:00

Media and technology investment company Concha said Moshen, an app developer it took a stake in five months ago, was in administration and that the security on a 300,000 pounds loan it made to Moshen was unenforceable.Moshen's administrators have told Concha that the debt, originally viewed as secured, was now classed as unsecured. Concha had provided £867,000 of funding to Moshem including £400,000 of equity. Concha, run by Chris Akers, the former chairman of Leeds United FC, said it was taking legal advice about the chances of success if it challenged the administrators. Concha revealed on August 27th that it had uncovered alleged financial irregularities at Moshen, which had not disclosed a significant creditor when Concha bought its 40% stake for £250,000 in April. Moshen Chief Executive Graham Baines was suspended.Aim-listed Concha had said Moshen was a leading developer and distributor of digital apps for sports, games and entertainment. Moshen had developed apps for Manchester City FC, Chelsea FC and Olympic rower Steve Redgrave.Akers, Concha's Executive Chairman, became a non-executive director of Moshen to monitor the investment and put Moshen in touch with his network of sports contacts. Concha said on August 27th that Moshen would not affect its core business or its ability to continue as an investment company.