The liquidators for Globe Trust and Investment Company Limited (GTICL) will likely have to request an extension on required court filings which are approaching owing to the continued poor response from debtors.
The majority of Globe Trust debtors have ignored repeated calls to repay by liquidators Nizam Ali, and only a tiny fraction of the funds have been recovered. Ali told Stabroek News yesterday that the funds collected so far are nowhere near what they should be, but he remains optimistic. The long-running appeal to debtors of the bankrupt company, which includes several directors, still stands according to Ali. Since taking over as liquidator, Ali has consistently appealed to those who owe Globe Trust to repay the organization.
The liquidator is required to make an important filing during the process and when questioned about this, Ali said a request for an extension is likely to be made. He said the slow pace at which debtors are responding to the process has affected it, particularly as it relates to moving forward.
Several weeks ago Ali had issued an advertisement seeking to locate individuals whose property had been managed by Globe Trust. Ali explained that the company had previously managed the properties collecting rent and paying related expenses in addition to holding funds in trust for the property owners. This, he said, will no longer continue and that the advertisement went out because it was difficult to locate the individuals. Since the publication about half of those concerned have responded. Ali said that those persons would essentially have to take back control of their properties.
Globe Trust debt collection has been non-existent despite solid attempts by the liquidator to reclaim some of the $750 million handed out in unsecured loans. Previously, Ali had stated that the liquidation process can only move forward if the monies are repaid, saying that Globe Trust is not in a position to refund depositors and cover other expenses if these monies are not paid back. In addition, Globe Trust is currently in court fighting to reclaim some of its funds.
In October last year, Chief Justice (ag) Ian 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 after which numerous depositors had intervened.