-court action looms
Globe Trust and Investment Company Limited (GTICL) liquidator Nizam Ali has recovered a fraction of the bankrupt institution’s funds since threatening legal action but refers to the collection as “poor and substantially below what is needed”.
The slow recovery process has dragged on for months as debtors continue to ignore calls by the liquidator to reimburse the company. Depositors are still putting in claims with Ali; some raising serious concerns about the winding up process.
And after talk of an approach to the court Ali told Stabroek News that he is getting closer to this option, disclosing that a legal team is already in place and that the relevant information and documents have since been passed on.
Prior to setting up a legal team, Ali had weighed court action, and observed that the process could take years. However, he insists that it remains the only viable option at this time.
Ali also said that the non-responsive attitude of debtors has forced him to contemplate whether to publish a list of the names of the defaulters. He explained that such a move is largely intended to draw people out because at “this stage people are not coming forward”.
Since the court ordered the compulsory liquidation of Globe Trust last year and appointed Ali’s company as liquidator there has been little movement in the process. Ali assessed the situation as a troubling one given that a substantial amount of Globe Trust funds are assigned as loans.
Ali had sent out letters to depositors several months ago seeking confirmation of their balances and a few persons initially responded.
The numbers of depositors coming forward have increased considerably since his letters went out.
Currently, he said that the liquidation process is now at the stage where the company’s assets are being realized.
Globe Trust collapsed after issuing many unsecured loans among other dubious practices.
The Bank of Guyana filed an application last October 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.