Tue | Jan 28, 2020

New Cash Plus row

Published:Thursday | March 31, 2011 | 12:00 AM

Barbara Gayle, Staff Reporter

A legal battle is now brewing between attorney-at-law Hugh Wildman, the trustee in bankruptcy and liquidator of Cash Plus Limited, and the former co-interim receiver-managers of the collapsed alternative investment scheme over court orders approving fees and the sale of Cash Plus properties.

Wildman said yesterday that he was seeking to have the orders set aside so that Cash Plus assets can be distributed evenly to depositors and creditors. He said so far Cash Plus depositors have not received any money.

The trustee in bankruptcy said he wants a detailed accounting of the co-interim receiver-manager fees and fees for all legal consultancy and other services.

It has been reported that the fees amounted to more than $200 million.

Kevin Bandoian, a chartered accountant of Pricewaterhouse-Coopers in the United States, was appointed joint receiver-manager of Cash Plus in March 2008.

In a motion filed in the Supreme Court yesterday, Wildman said he was seeking several other court orders, one of which is to block the sale of the Hillshire Hotel in Montego Bay which is owned by Cash Plus Ltd and is valued at approximately US$3 million.

Date of court orders

Wildman explained that the court orders for fees and expenses and sale of Cash Plus properties were made before he was appointed liquidator for Cash Plus in February 2009.

He is seeking declarations that the appointment of the co-interim receiver-managers under the order of the court made on March 31, 2008, was improper and, therefore, ineffective.

He is asking the court to direct that the co-interim receiver-managers provide the trustee in bankruptcy with copies of all documents, including sale agreements and statements of account with respect to transactions and dealings involving the assets of Cash Plus

Ltd, its subsidiaries and affiliates, including all properties disposed of during the receivership.

Wildman is seeking to get court orders for all reports of their receivership and that they pay to the trustee in bankruptcy all sums held on account of Cash Plus, its subsidiaries and affiliates.

He is also asking the court to revoke a court order made on November 11, 2008, approving the fees and expenses of the co-interim receiver-managers and revoke the order for them to be sealed.

An order is being sought for the co-interim receiver-managers to provide the trustee in bankruptcy with a detailed account of their fees and other services commissioned by them during their receivership of Cash Plus and its subsidiaries. Wildman wants the court to give him permission to retain a firm of accountants or auditors to review the fees and assess their reasonableness and make payment to them in accordance with the assessment.

Court orders dated March 23 were filed on behalf of the co-interim receiver-managers regarding the sealing of documents but Wildman wants them to be dismissed.

Asking for title certificate

He is seeking an order that the notice of application for the March 23 court order, filed on behalf of the co-interim receiver-managers regarding the proposed sale of Hillshire Hotel in Montego Bay be dismissed. He is also asking the court to order the co-interim receiver-managers to deliver up the certificate of title for the hotel.

Cash Plus Ltd was headed by Carlos Hill, who since 2008 has been facing fraud charges along with his brother, Bertram, and Peter Wilson, former chief financial officer of the investment scheme.

Hill is also charged with fraudulently inducing persons to invest in Cash Plus and his trial is to take place in the Home Circuit Court on June 13.