After not being able to repay a loan to the Guyana Bank for Trade and Industry (GBTI), construction company Dipcon Engineering Services Limited (DESL) has entered into receivership and its assets will be liquidated.
DESL’s parent company is based in Trinidad and has operated here for many years.
According to an advertisement in yesterday’s Guyana Times, the Barber Greene Asphalt Plant at Sheet Anchor, Canje, East Berbice, is currently for sale since the company has been placed in receivership.
According to the ad, the Control Room (40’X8’) with all electrical switches and controls for the operation of the plant are all for sale ‘as is where is’.
All bids are expected to be sent to the receiver, Harry Parmesar by November 25. Speaking to Stabroek News yesterday, Parmesar confirmed that Dipcon Engineering Services Limited had be placed in receivership since it has not been able to repay a loan that was taken from GBTI by the required date. “It’s a normal thing with the bank when you default there are certain processes the bank has to go through with their client and once they go through that and work it out with you [client] and they realize that they are not going to get anywhere then they would give it over to a receiver,” Parmesar explained.
He explained that the company had signed a debenture, giving the bank the right to take the company’s assets as collateral in such a case where the company couldn’t repay their debts. “Once the bank gets back their money from selling the company’s assets they would give it back to the owners but in 95% of the cases nothing is left,” he said, explaining that since the company’s assets would be sold for significantly less than the market price, it usually takes the sale of the entire company to repay the debts.
“The company would’ve been here operating for years and most of their assets would now be run down and would’ve deteriorated so the price you would get for them are nothing close to the market price but we would still go with the highest bidder,” he highlighted.
Parmesar pointed out that the company has been in receivership for about two months and while they are now starting the process of liquidating the assets he expects it to be completed in the first quarter of 2017.
While the company had recently won a case against the government over the East Bank Road, Parmesar explained that the bank is hopeful that the money, if received, can be used to repay the debts and settle the matter. However they would not be waiting on the repayment and will be going through with the liquidation.