Ram joins Solomon in Mazaruni receivership
Stabroek News
February 12, 2004
Mazaruni Granite Products Ltd (MGPL), which went into receivership last year owing $4.3B, now has two receiver/managers, Maurice Solomon and Christopher Ram.
It is the first time in Guyana's history that two receivers/managers are acting simultaneously with one company and Ram indicates that he is trying to establish a working relationship with Solomon to deal with the issues at hand.
Solomon was appointed early in 2003 and represents the Royal Merchant Bank of Trinidad and Tobago, while Ram represents Development Finance Ltd, an equity partner and lender in the project.
MGPL headed by Peter Cummings ran up substantial debt after its modern plant failed to find local and Caribbean markets for its quarry products.
A statement of affairs prepared by Solomon on MGPL shows that the company amassed a debt of $4.29B billion and its assets as of July 17, 2003 fell short by $698M to liquidate these debts.
MGPL's assets available for preferential creditors and debenture holders as secured by a floating charge as well as unsecured creditors stood at $3.6B and of this amount, secured creditors and debenture holders stood at $3.56B, leaving a mere $41M available for preferential creditors and unsecured creditors.
The debt outstanding to preferential creditors - the Guyana Revenue Authority and the National Insurance Scheme- stands at $195.7M, while unsecured creditors are owed $543M, realising an estimated deficiency of $697 million.
Among the list of unsecured creditors are Peter Cummings himself ($110,910), Shiraz Ali ($14 million), Dr Karen Persram, ($87,600), Karen Pilgrim ($106, 375), the Commissioner of Police (($99,117), Police TSU ($61,770), Woodlands Hospital ($90,795), Prasad's Hospital ($17,795), Whitewater Tours ($14.9 million), Ram & McRae ($6.1 million), Hand in Hand Insurance Company ($5.5 million), Ground Structures Engineering ($2.9 million), Didco ($2.4 million), Guyana Geology and Mines Commission ($49 million), Gafsons Industries Ltd ($54 million), Guyana Power and Light ($1.1 million), Gregory Lewis ($1.6 million), Kayman Sankar Investment Company ($3.4 million), Ramesh Kissoon ($5.8 million), Laparkan ($1.5 million), Guyana Bank for Trade and Industry ($4.3 million) and Price Waterhouse ($4.5 million). All told there are 115 creditors.