The Bank of Nova Scotia has ceased its receivership hold on Hotel Tower Limited in an equity transaction which sees businessmen R L Singh, Amarnauth Muneshwer and Ashoka Singh of Canada as the new majority shareholders of the company.
The old board of the hotel, chaired by David King and comprising John G Carpenter, Kenneth De Abreu and Richard Humphrey along with hotel attorney Joseph King resigned on June 6 to facilitate the change of ownership and vesting of controlling interest in the new owners.
According to court documents, Chartered Accountant Christopher Ram, receiver/manager of the hotel since 1999 notified the Registrar of the Joint Stock Company on June 6 that he has ceased to act as receiver of the hotel.
The hotel had issued a first debenture covering $15M to the Bank of Nova Scotia on June 4, 1992, a second debenture covering US$1M on September 6, 1995 and a third debenture covering US$880,000 on February 13, 1998.
When the hotel defaulted on its debt in early 1999, the bank appointed Ram as the receiver/manager. The negotiations for the infusion of fresh equity and capital into the hotel have been going on for some time but these have been kept quiet.
The Bank of Nova Scotia last week declined to comment on the transaction. The new owners have already taken possession of the hotel.
The hotel is among a number of businesses which went into receivership over the last five years as the economy slowed.