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February 5, 2008 |
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NAT'L COMMERCIAL: Court Refuses To Extend Cash Plus' Injunction Jamaica's Justice Marva McIntosh has refused to extend Cash Plus Limited's injunction that prevented the National Commercial Bank Jamaica Limited from closing its remaining seven accounts, Radio Jamaica reports. As reported in the Troubled Company Reporter-Latin America on Jan. 28, 2008, the injunction that a Jamaican court granted to Cash Plus against the National Commercial expired last week. Cash Plus had obtained the injunction blocking the National Commercial from closing its accounts last year. The attorneys for Cash Plus sought another injunction against the National Commercial before the Jamaican court. The National Commercial's management allegedly implemented precautionary measures to protect its workers from angry supporters of alternative investment schemes. The management instructed the workers not to wear their uniforms to work. The instruction was reportedly issued on Wednesday when persons accusing the National Commercial of taking part of a plot to destroy alternative investment schemes threatened the bank. Justice Marva McIntosh granted CASH Plus Limited a nine-day injunction, blocking the National Commercial from closing the 16 accounts held with the bank. The injunction effectively prevented the National Commercial from closing Cash Plus' accounts at its Duke Street and Barry Street unit in Kingston by Dec. 4. Some of Cash Plus' account with the National Commercial include: -- remittance account, -- foreign currency account, -- Cash Mart Ltd, -- Cash Plus Foods Ltd, -- Atlantic Gas Distributors Ltd, -- ExMil Security Company Ltd operating and general accounts, and -- the Drax Hall Ltd development local and foreign currency accounts. The National Commercial's legal representative Dave Garcia explained to Radio Jamaica, "The judge found that Cash Plus was in breach of its contract with NCB [National Commercial] and that it breached that contract, by failing to supply NCB with vital information that the bank had requested to comply with statutory and regulatory requirements. By reason of that breach, the court found that NCB was put at risk and the bank acted in response to that. The judge also found that Cash Plus was given sufficient time by NCB to close its accounts." The attorneys for Cash Plus told Radio Jamaica that they will be filing an appeal on the ruling. Cash Plus' lead attorney Harold Brady told RJR News that he is getting instructions from the firm on how to challenge the ruling. He said he heard that the National Commercial closed the accounts immediately after the ruling was made. According to Radio Jamaica, the National Commercial returned Cash Plus' funds in the form of a manager's cheque. Meanwhile, man of Cash Plus clients are wondering what is next for Cash Plus, Radio Jamaica says. Cash Plus will have to seek alternative arrangements to continue operations and to provide refunds to its investors. Based on talks in the banking sector, Cash Plus will still comply with banking regulations, Today's Money Limited chairperson Orville Johnson told Radio Jamaica. About National Commercial Bank Headquartered in Kingston, Jamaica, the National Commercial Bank Jamaica Limited -- http://www.jncb.com/-- provides commercial and retail banking, wealth management services. The company's services include personal banking, business banking, mortgage loans, wealth management and insurance services. Founded in 1977, the bank primarily operates in West Indies and the UK. * * * As reported in the Troubled Company Reporter-Latin America on May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica- based National Commercial Bank Jamaica Limited: long-term foreign and local currency Issuer Default at 'B+'; short-term foreign and local currency rating at 'B'; individual at 'D'; and support at 4. The rating outlook on the bank's ratings is stable, in line with Fitch's view of the sovereign's creditworthiness. As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Standard & Poor's Rating Services affirmed its 'B/B' counterparty credit and CD ratings on National Commercial Bank Jamaica Ltd. S&P said the outlook is stable. |
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