Globe Trust and Investment Company Limited (GTICL) liquidator Nizam Ali will soon move against debtors of the bankrupt institution that have been reluctant to repay, signalling a fresh round of court battles as the institution seeks to cover its liquidated expenses.
Since acting Chief Justice Ian Chang ordered the compulsory liquidation of the company last month no debtor has come forward, but some depositors have surfaced with the hope of being reimbursed. Reports are that the liquidators are being approached everyday.
Nizam Ali told Stabroek News yesterday that he is considering moving against debtors to reclaim funds, while pointing out that Globe Trust is already in court over outstanding balances. However, he noted that the liquidation process can only move forward if the monies are repaid. Therefore, a move to the court is imminent. “The court process can be protracted and we could be tied up there for years fighting to reclaim money but Globe Trust is not in a position to refund depositors and cover other expenses if these monies are not back with the company,” Ali explained.
Ali also said letters have already gone out to depositors seeking confirmation of their balances and to date, a few persons have responded. The liquidation process is now at the stage where the company’s assets are being realised. Ali explained that all of Globe Trust’s assets would have to be disposed of, and these include vehicles and furniture among other items.
He frankly stated that the liquidation would take in excess of a year, adding that his intention was to have the process completed in a year. “It would not be remotely possible to have this over in a year based on what is happening,” Ali said.
He further disclosed that depositors have been approaching him everyday after he was formally appointed liquidator enquiring about their payments.
Last month, Chang issued an order for the compulsory liquidation of Globe Trust following a High Court application by the Bank of Guyana (BoG).
The company came crashing down after issuing many unsecured loans among other dubious practices. The BoG filed an application asking that an order be granted for the compulsory liquidation of GTICL as provided for under the Financial Institutions Act after an investment deal for the troubled institution failed to materialise. It was the second such application-the first was filed in 2002. In 2002 numerous depositors had attempted to intervene in the case.
Globe Trust began operating in April 1991 and was licensed in 1999 to conduct depository financial business with authority to engage in trust business. However, in 2000 and 2001 a series of inspections by the BoG found the institution to be in breach of the Financial Institutions Act, and the BoG, with the intention to liquidate, seized the institution in September 2001.
Several attempts thereafter to attract an investor failed. Stabroek News was told that close to 87 investors had expressed an interest, but that no serious attempts were ever made to follow through with proposals.
The most recent potential investor promised to inject funds into the institution but did not do so.
Re: “Globe Trust began operating in April 1991 and was licensed in 1999 to conduct depository financial business with authority to engage in trust business. However, in 2000 and 2001 a series of inspections by the BoG found the institution to be in breach of the Financial Institutions Act, and the BoG, with the intention to liquidate, seized the institution in September 2001.
Several attempts thereafter to attract an investor failed. Stabroek News was told that close to 87 investors had expressed an interest, but that no serious attempts were ever made to follow through with proposals.
The most recent potential investor promised to inject funds into the institution but did not do so…” Yours truly will maintain that the Bank of Guyana/Government of Guyana (like what the U. S. and other Governments around the world have done for their financial institutions in their countries currently experiencing what is considered the worse crisis in this century) should have pumped the required funds into “Globe Trust and Investment Company Limited (GTICL)”; and, the gut feeling is that there were ulterior motives behind decisions to liquidate this institution like was the case with the Guyana Co-operative Agricultural and Industrial Development Bank (GAIBANK) and other institutions that were once under the COFA umbrella.
Remember these words anyone: “JOBS-BABY-JOBS”!
And, all Guyanese voters (affected by this outcome to liquidate “Globe Trust and Investment Company Limited (GTICL)”) should remember very well what to do come General Elections in Guyana in 2011.
Re Globe Trust The banking crisis [Financial Meltdown] being experienced around the world cannot be compared with the Globe Trust situation. Globe Trust is not even a bank, and does not hold a Banking licence.
Have you considered that it might have made more financial and economic sense to liquidate in 2001 as you said. Maybe more funds would have been available to repay the depositors at that time !
Funny, there was no comment about the persons who put this institution in this position.
Tangerine
Under any govt in Guyana, PPP/PNC, the same will happen. Only dunces have had the reins of power from 1966 to present. I’m open to debate this.
Hey “VIJAY SINGH”! In saying what you are saying – have you considered how many fingers are pointing back at you. LOL! Now, where is your evidence to back-up your assumptions/assertions?
Hi “sweetsapodilla” or “Tangerine” (I might as well call you FRUITY :-) ), Re: “Funny, there was no comment about the persons who put this institution in this position…” This is like saying: “One rotten erring spoil the whole barrel”; or, “guilty by association” in that if “C Y BRTTLEBANK” join the already sinking ship (Globe Trust) in 2003 or 2004 then “C Y BRITTLEBANK” must take blame (whether full or partial..) for the sunken ship. In as much as your have said that “Globe Trust is not even a bank, and does not hold a Banking licence” how about you telling us which “ideas” does not have any value and can “fail” in the ways that human being do. So, what (lending criteria, formula….) were being used by Globe Trust that there cannot be a comparison between it and the current “[Financial Meltdown]“… Explain why this cannot be the case and whether “JOBS-BABY-JOBS” made any “financial and economic” and TECHNICAL “sense” not “to liquidate Globe (Trust) in 2001 (or in 2008)”!
What do you do in Guyana (work wise) anyway!