Yesterday, Cash Plus' Trustee in Bankruptcy (it's temporary Liquidator), attorney Hugh Wildman, sought to evict former Cash Plus boss-Carlos Hill, from his $40-million home at 94 East Armour Heights in upper St. Andrew, Jamaica.
This was in accordance with the 30-day eviction notice issued by the court (as a part of liquidation proceedings against Mr. Hill and Cash Plus), which expired yesterday.
However, Mr. Hill's lawyers filed an injunction in the Jamaican Supreme Court which prevented the eviction from taking place.
According to the Jamaica Observer:
Mr. Hill's lawyer, Ms. Fajolu, cited arguments that Mr. Hill did not have the money to secure new residence and that he had security concerns as he has received several death threats.
The lawyer added that the notoriety of Hill's case limited the choices of landlords who would rent or lease to him.
The court gave Mr. Hill, 14 days to vacate the premises.
[Cash Plus was placed in receivership (its debts outweighed its assets) in April 2008. At that time, Kevin Bandoian, a chartered accountant employed to PriceWaterhouseCoopers in the United States, was appointed joint receiver-manager].
What is unfortunate for Cash Plus investors is that they will receive less than 16 cents in every dollar of money they had invested in the company.
...Quite a far cry away from the reported 10% interest per month, that they were getting before Cash Plus collapsed.
However, I want Cash Plus investors to take note, here, of who the big money winners are in all of this (Source: CVM Television's "Business Watch" Programme, June 1,2009):
1) The lawyers representing Mr. Hill, his brother Bertram and their estate - they will pocket JMD $4 billion dollars (US $46.5 million) in legal fees
2) The Receiver-Managers in the form of the US-based PriceWaterHouseCoopers - who were called in in April 2008, to oversee Cash Plus operations, assess its assets and disburse remaining monies to investors - they will pocket over JMD $300 million (US $3.5 million) Jamaican dollars in consulting fees.
It has been reported by the media, that when Mr. Hill's estate has been liquidated, this will result in JMD $800 million (US $9.3 million) in revenue that will be used to pay investors.
Hmmh!
Interesting huh?..that:
1) These two entities were called in after Cash Plus collapsed and yet they are being paid prior to Cash Plus investors?!?
2) That it took a little over one (1) year for US-based PriceWaterhouseCoopers to find the 'huge labyrinth' of Cash Plus assets, only to come up with Jamaican assets worth only JMD $800 million (US $9.3 million)...
...Very interesting indeed!
==========So, who's the big loser in this latest Cash Plus saga?...
The investors of course!
...What do you think?
(I would like to thank karl151k for the use of his Flickr inset photo above).
Gillian
Sources Include
1) Article, "Court has pity on Carlos Hill", by Paul Henry - Staff Reporter, Jamaica Observer, June 2,2009
2) Power 106 News at 5:00 p.m., June 1,2009
3) CVM Television's Programme, Business Watch, June 1,2009
4) Article,"Hill almost evicted", RadioJamaica.com, June 1,2009
5) Article, "Cash Plus in turmoil - Investment club in receivership- Investment club in receivership", April 1,2008
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