Published: Wednesday May 7, 2008
Dyoll Group Limited has got the go-ahead from shareholders to wind up the company at a special meeting in Kingston last Friday.
It's now up to the Dyoll board, which is operating a company that is now totally devoid of income, to petition the Supreme Court for the appointment of a liquidator.
In the interim, the company is expected in court this week as defendant in a suit brought against it by the liquidators of its insurance arm that was stripped away from the group in early 2005 by regulator, the Financial Services Commission.
Dyoll Insurance's lawyer, Debbie-Ann Gordon, had no immediate comment on the group's plans to liquidate.
The case will be heard Thursday.
Dyoll Insurance is seeking $388 million of damages in a case alleging overcharging of fees by parent, Dyoll Group.
Substantially defendable
"We believe that the claim is substantially defendable," said Donovan Jackson, lawyer for Dyoll Group, and a partner in the law firm Nunes, Scholfield and Deleon.
But the company has also warned shareholders that if the case went against them, it would render the group insolvent.
Dyoll Group has access to some US$1.3 million, the remainder of a US$2 million award in a case against Drax Hall Estate.
Dyoll has already collected US$700,000 of the award.
Chairman Dr Damien King and Jackson advised shareholders at last week's meeting that several investors had shown an interest in purchasing the judgement debt, but no deals had been closed.
Drax Hall is a 550-acre housing estate located in St Ann. It, too, is on the market hunting buyers.
"We are confident that the debt will be realised as it is secured against saleable property of significant value," said King.
Source:
Sabrina N. Gordon, Business Reporter
Jamaica Gleaner
http://www.jamaica-gleaner.com/gleaner/20080507/business/business7.html
sabrina.gordon@gleanerjm.com
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