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Almost seven years after Government regulators were forced to seize control of the finances of Globe Trust and Investment Company Limited (GTICL), depositors are now facing the prospect of never being able to retrieve their savings.Over the weekend, in a newspaper advertisement, the Bank of Guyana announced that it has filed a High Court action applying for compulsory liquidation of GTICL.Depositors and other interested parties have until September 3 to object to the looming liquidation. At that time, the matter comes up for a hearing before Chief Justice Ian Chang.Should the entity be granted the court order, depositors, whose savings amount to almost $800 million, could very well end waiting for their monies, which may never come as the Bank of Guyana and Guyana Revenue Authority will have to be paid first.How much of an impact the liquidation will have on the lives of account holders remains to be seen. What is known is that many had their life savings at GTICL.The court application was made under the Financial Institutions Act of 1995,Alexander Mogilny Jersey, which lists the manner in which companies being liquidated have to settle their debts.The court action will also mean that attempts to use a Brazilian investor to rescue the troubled financial institution have failed.In May, the unnamed Brazilian investor, who requested an extension of time to ponder his proposal to invest in Globe Trust, was still pondering.Globe Trust opened its doors to the public in April 1991, and after its initial period of operation, recorded profits from December 31, 1992 until December 31,Kurt Warner Cardinals Throwback Jersey, 1999.In 2000, the problems associated with its non-compliance with the terms of the Financial Institutions Act (FIA), especially those pertaining to non-performing loans, began to take effect.After a series of inspections by the Central Bank and consultations with the Directors, the Central Bank took immediate possession of Globe Trust on September 21, 2001.Prior to the Central Bank action, the company had closed its doors to the public on July 17, 2001.On November 27, 2001,Alex Iwobi Arsenal Jersey UK, the Central Bank instituted legal action, as is required under the FIA, to have the company liquidated.On July 25, 2002, the Chief Justice ordered the re-organization of Globe Trust under the Bank of Guyana, as set out in Section 50 of the FIA.As at December, loans owed to Globe Trust totalled $721 million, of which $650 million may be collectable.With more than 5000 depositors’ accounts, amounting to $793 million, frozen because the company is in receivership, under the approved re-organization plan, Bank of Guyana as the regulator is hoping that depositors can get back their money.Speaking with this newspaper in May, Administrator of Globe Trust, Nizam Ali, of Nizam Ali and Company, accountants,Teemu Selanne Ducks Throwback Jersey, had said that the investor and his team of consultants, whom Kaieteur News has learnt are from Brazil, were in Guyana in March, and during several meetings raised questions and were given answers.Ali also disclosed that the investor was looking at other investments in Guyana and was hoping to tie that in with a Globe Trust deal.In May, also, Governor of Bank of Guyana, Lawrence Williams, admitted that while there is no timeline given to the Brazilian investor to make a decision, Guyana will not be sitting around waiting forever.In December, former Administrator Conrad Plummer, whose tenure was up several weeks ago, had announced that the Brazilian investor had signalled his intention to invest US$3.5 million to acquire the shares in the entity, and a further US$1.5 million to rehabilitate the infrastructure, among other things.The South American investor was the most likely prospect of a total of 93 companies or persons indicating interest in GTICL.While the administrator had no authority to grant the extension of time for the investor, the request earlier this year was forwarded to the Bank of Guyana for response. The Brazilian investor had been granted an earlier extension that ended on February 15 last.Regarding the question of why, as administrator, he did not seek legal redress by taking the former management and directors of GTICL to court, Plummer, during a farewell press conference,Andrew Franks Dolphins Jersey, had said that he is not of the belief that going to the courts would have helped with the reorganization.“No investor would have become involved in a company which was engaged in that kind of litigation. Besides, if the re-organization plan promised a full or partial repayment to the depositors, what amounts were you to sue for?”The administrator added that the liquidator, if it ever reached that stage, still has the possibility of using the option of the courts.“I still think that GTICL is a reasonable investment in the longer term. On the other hand, it was difficult dealing with the fact that depositors, who could ill-afford, may lose their life-savings. At times, it was an emotional see-saw,” Plummer had said.In December, Plummer, who has years of banking experience at the helm of the National Bank of Industry and Commerce Ltd (now Republic Bank), revealed that more than 80 per cent of the persons or businesses who took loans from GTICL are before the courts.On June 3, 1999, the Central Bank granted a licence to Globe Trust to conduct in Guyana depository financial business with authority to engage in trust business.This licence remains in force today. Currently, Globe Trust is still maintaining customers’ passbooks and deposit certificates.Under the plan,NCAA Hockey Jerseys, the administrator is hoping to re-adjust deposits to their July 2001 value, when the financial institution had closed its doors.
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