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April 11, 2008 |
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CASH PLUS: Dates for Repayments Invalid, Says Kevin Bandoian Cash Plus Limited's court-appointed Co-Interim Receiver-Manager Kevin Bandoian has confirmed that the dates for repayments published by the firm's chairperson Carlos Hill are no longer valid, Radio Jamaica reports. According to Mr. Bandoian, Mr. Hill published the repayment dates on March 30, 2008. As reported in the Troubled Company Reporter-Latin America on April 3, 2008, the Supreme Court of Jamaica placed Cash Plus into receivership. 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. 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. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. Mr. Bandoian told Radio Jamaica that Mr. Hill admitted that he couldn't obtain the needed funds to discharge his obligations to investors on April 14, 2008, or access sufficient liquidity to start repayment on the promised date. Information supplied by Mr. Hill last Friday made it clear that the payment plan he had announced would have to be suspended, Radio Jamaica says, citing Mr. Bandoian. Mr. Bandoian told Radio Jamaica that his team was trying to gather all information on Cash Plus' assets to determine what money is available to repay investors. Mr. Bandoian's team has found over 80 affiliates of Cash Plus in several nations, most of them appear to have little or no assets and business activity, Radio Jamaica notes. The report says that "turning to the issue of the books kept by Cash Plus entities and affiliates, Mr. Bandoian noted that what his team had to contend with the existence of conflicting records." Cash Plus Limited 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. In April this year, the Supreme Court of Jamaica placed Cash Plus into receivership. 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. Cash Plus was unable to repay its investors. 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. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. |
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