RBC bank targets Angella Whitter for $2-billion debt

 McPherse Thompson, Assistant Business Editor

Lawyers for RBC Royal Bank Jamaica will be heading to the Supreme Court in June to ask that a US$21.65-million judgment be entered against Angella Whitter in her capacity as executrix of the estate of Montego Bay real estate investor and developer Slidie Joseph Whitter.

The bank sued two months after the businessman's death to recover a loan granted to one of his companies.

The claim converts to J$2.3 billion at current market rates.

A usually reliable legal source told the Financial Gleaner that DunnCox, attorneys for RBC, filed an application in the Supreme Court on February 12, this year, for judgment to be entered against Whitter, who is the widow of Joe Whitter and defendant in an action brought by the financial institution.

The matter is set for hearing on June 11.

Lawyers for the bank were tight-lipped about the legal action, referring the Financial Gleaner to RBC Jamaica, which said in an emailed response that "for reasons of client confidentiality and privacy, we are unable to publicly discuss any details concerning this situation. Further, as the matter is currently before the court, we cannot provide any further comments at this time".

Adley George Duncan, the lawyer for Angella Whitter, said, however, that the parties have arrived at a settlement. The terms are said to be confidential.

According to court documents - copies of which have been obtained by the Financial Gleaner - the case relates to a loan agreement dated December 24, 2007 and amended on February 12, 2013. RBC provided aggregate credit facilities in favour of Ironshore Construction Company Limited, totalling US$19.6 million. The company's majority owner was Joe Whitter.

various securities

In an affidavit, RBC, through a representative, said the loan was secured by various securities, including personal guarantees and indemnities of Joseph and Angella Whitter; guarantee mortgage by Green View Limited, another corporate entity majority owned by the businessman; first legal demand mortgage by Ironshore Construction; deed of assignment of rents by Ironshore and company debenture issued by Ironshore.

RBC said the Whitter Village complex in Ironshore, located in the suburbs of Montego Bay, is constructed on lands which are the subject of the 2007 mortgage as well as on other lands owned by Ironshore Construction. Another of Whitter's developments, Green View, is also said to be on lands mortgaged under the 2013 loan agreement.

On March 1, 2013, the terms of repayment of principal and interest were amended to provide for amortisation in two principal tranches of US$16.6 million and US$3 million. However, RBC said the split never occurred because Ironshore Construction did not meet the requisite conditions.

Joe Whitter passed away on August 19, 2013. RBC's representative said lawyers for Angella Whitter advised the bank, among other things, that she is the executrix named in her late husband's will and that she is the beneficiary of all shares, holdings and interest in Ironshore.

RBC sought redress through the courts in October that year. It said Ironshore was in arrears on the debt even before Joe Whitter's passing. The outstanding balance was estimated at just under US$19.6 million on the loan, along with interest of US$1.96 million, as at September 2013.

RBC said that it demanded repayment of the loan from Angella Whitter in her capacity as executrix, but that the debt remains outstanding while interest is accruing. At the same time, Whitter began taking steps to dispose of substantial assets of the estate less than two weeks after her husband's death, the bank said.

In January, Trans Caribbean Jamaica Limited announced the pending auction of several Whitter properties, including Whitter Village, Ironshore Golf & Country Club, a nature property at John's Hall, and resort land parcels.

Angella Whitter, who is in charge of Trans Caribbean, was said to be in a meeting when contacted for comment. Spokespersons for US-based Diliberto Real Estate Services, LLC, which is handling the sale on behalf of Trans Caribbean, were also unavailable for comment, but the office said the auction is still in process.

mcpherse.thompson@gleanerjm.com