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April 3, 2008 |
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CASH PLUS: Debt Exceeds Income; Goes Into Receivership Cash Plus Limited is in receivership, Barbara Gayle and Gareth Manning at The Jamaica Gleaner reports. According to The Gleaner, a firm goes into receivership when its debt exceeds its income. The report says that Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. As reported in the Troubled Company Reporter-Latin America on April 1, 2008, Cash Plus was unable to repay its investors on March 31. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. The Gleaner relates that one of Cash Plus' managers secured approval from Senior Puisne Judge Marva McIntosh at the Jamaican Supreme Court for the appointment of a temporary manager. Justice McIntosh granted the approval after hearing an application from attorneys-at-law Gordon Robinson and Minette Palmer. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus, The Gleaner notes. According to Pricewaterhouse Coopers, Mr. Bandoian will start work immediately from the offices of Cash Plus and its affiliates under the supervision of the court. He will advise creditors of the progress of the process. The Gleaner notes that the appointment of the receiver-manager allows for supervision of the operations of Cash Plus and the determination of assets belonging to the firm so that a report may be made to the court on the assets available for distribution to creditors. The court has prohibited Cash Plus and its affiliates from selling, transferring, and dealing with or dissipating the assets of the company, The Gleaner states. Cash Plus Ltd is an investment club in Jamaica . It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. CONSTELLATION COPPER: Defaults in CN$69 Million Debentures |
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