Bank of Guyana advertises for Globe Trust administrator
Stabroek News
September 22, 2002
The Bank of Guyana has advertised for an administrator for the bankrupt Globe Trust and Investment Company Limited (GTICL) having decided not to appeal the Chief Justice’s decision that it should attempt to reorganise the company before moving to liquidate it.
The administrator, according to a letter the bank wrote the Globe Trust Action Group, will consider the views of all the stakeholders.
Meanwhile, Stabroek News understands that a group with South African interests has been given the go-ahead by the Guyana government to undertake the re-organisation of the GTICL into which it is expected to inject some working capital.
Stabroek News understands that Eric Phillips, who is supported by the African Cultural Development Association, a major depositor in the company, is coordinating the South African group. The group is still in discussions with the government about the conditions for its involvement and the support that would be forthcoming from the treasury.
The bank in September 2001 took over the administration of Globe Trust and later moved to the court seeking permission to liquidate it. The majority of GTICL’s depositors and its board of directors who contended that the bank had failed to follow the procedures as set out in the Financial Institutions Act before moving to liquidate the company opposed the petition. Their opposition was in part prompted by the bank’s decision not to consider the restructuring proposal drawn up city accountants Ram and McRae.