The Inside Story of the Global Resorts International (GRIA) Inc. and the Selling of UFA

UFA is the abbreviation for Un Fischer Electric. The company produces electric motor vehicles, including passenger vans and commercial trucks. UFA itself has several large manufacturing industries including mechanical engineering, power and gas stations, electrical devices, telecommunication, and typewriters. In addition, UFA also manufactures components, engines, transmissions, air conditioning systems, generators, control systems, lighting solutions, automatic loading system, automatic transmission systems, safety systems, and control systems. In short, any product that needs to convert from electrical energy to mechanical energy can be manufactured using UFA components.

UFA was formed in 1970 in the former Soviet Union. At the time, the economy was based upon heavy investment of resources by the state. Production of electric vehicles was a crucial step for both domestic and foreign businesses. The firm had a number of partners from various countries. Among these were the United States, United Kingdom, Canada, Germany, Sweden, Russia, France, the Netherlands, Italy, Japan, and the republic of Kazakhstan.

At its launch, UFA had manufactured in fourteen key locations. These included oil refineries in Los Angeles, California; a fueling terminal in Saint Petersburg, Florida; a terminal in Kashylls, Washington; a fueling terminal in Moscow, Russia; a terminal in Kazakstan, the capital of Kazakhstan; two fueling terminals in Tomsk and Irkutsk. Today, these refineries continue to operate at full capacity. Besides this, there are half a dozen plants in the Russian Federation and one each in Kazakhstan and China. At present, there are more than six hundred employees and over four hundred vehicles in service.

The UFA Electric Vehicle (EV) production contract was initially signed with the aim of exporting vehicles from the United Kingdom to various Asian countries. The first contract was for twenty-two million pounds (approximately US $ thirty-eight million) and later was extended to fifty-two million pounds (approximately US $ 55 million). By the time of renewal of the contract was extended again to a total of one hundred and forty-two million pounds. It is interesting to note that in this same period the United Kingdom’s automotive industry was undergoing significant changes, namely the closure of its final car manufacturing facility in Coventry and the moving of its Jaguar car manufacturing to Thailand. The reasons for the move were cited as being the need for cheaper labour in Thailand and the need to focus on international markets.

On July 9th, 2020 the shareholders of UFA took a positive view of the company by voting nine to one in favour of extending the contract to a further one year. This brought about a further increase in the production volume, bringing about an overall increase in turnover in the company from twelve thousand to twenty-four thousand. The financial results were very impressive, with the company earning a total of one billion pounds in the twelve months to the end of the contract, an increase of almost thirteen percent from the previous year.

In July 2020 the shareholders approved a further three-year contract extension, bringing about an increase in turnover again to nearly twenty-one million pounds. This time the contract was extended to a period of eight years, having been originally signed up for a period of six years. A further five years’ contract was signed in November 2020, with an option to renew the agreement every four years. The total figure is an increase of almost twenty percent when compared with the six-year period originally agreed upon.

An intriguing fact about UFA is that it started out as a company registered in the Bahamas. However, after becoming a fully UK company in January 2020, the company did not start trading, despite the paperwork being in order. A spokesman for the organization claimed that the company was set up to carry on the work already carried out by the previous management team, which had resulted in the original Bahamas registered company having been wound up. He went on to say that the company’s work would continue as normal under different management, but no work had been carried out by the entity since December 2020. Despite this, the regulator approved UFA, saying that it was in existence since its establishment. However, the regulator failed to inform UFA that its company had become a direct selling product, thereby making it a direct selling vehicle.

The sale of UFA was completed in August 2020, despite attempts by the company’s former directors to stop it. The sale was brought forward by the business’s new owner, who signed the sales agreement in front of a UFA official. Two days later, on August 29th, a letter of default was presented to the shareholders. On the same day, the majority of the shareholders voted to accept the company’s proposal, resulting in the sale of UFA to Global Resorts International for nearly one million pounds. The directors did not have the authority to sell UFA without the consent of the whole shareholder, which is why they signed the sales contract and placed it before a UFA official.