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April 29, 2008 |
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CASH PLUS: Has US$15 Million Unclaimed Deposits, Report Says Cash Plus Limited has at least US$15 million in unclaimed deposits, Caribbean Business Report says, citing sources. The sources told the Caribbean Business that Cash Plus could use those deposits to pay lenders. A source commented to Dennise Williams at The Jamaica Observer, "Cash Plus has paid out US$20 million in deposits on properties." Cash Plus paid a deposit of US$3 million on the Drax Hall property in St. Ann and US$7 million on the Hilton Kingston Hotel, The Observer says, citing the source. A source further told The Observer, "Cash Plus has paid monies on other properties such as the Dorchester Apartments and Mainland Hardware. Cash Plus owns businesses with convertible assets. The company owns 50% of a used car firm, so the receiver can take the cars and sell them." Caribbean Business relates that the Hilton Kingston Hotel was sold to “a Cayman concern for a price in the region of US$40 million.” Sources told The Observer, "The original Cash Plus lawyers that put together the real estate and business deals have just dropped their hands since things went bad." The firm's receiver can apply the law to recover monies outstanding, The Observer notes, citing sources. "The law says that you only forfeit 10% of your deposit paid on property. The receiver has to make sure to recover the rest of the monies as people will take the opportunity to gobble up the full deposit," the sources added. 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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