Court frees HCU assets; liquidators waiting to sell assets

All the assets of the Hindu Credit Union (HCU) and the HCU group of companies in Trinidad and Tobago have been frozen. And a High Court judge has granted an application to appoint R. Rampersad and Company as a provisional liquidator for HCU's assets.

The decision comes three years after credit union members reported difficulties in getting their savings from the Chaguanas-based organization and started clamouring to their money.

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The move has apparently been approved by the board of the credit union. And according to the Trinidad Express, the credit union's President Harry Harrinarine is pleased with the judgment.

The HCU's lawyer, Odai Ramischand, told the paper people who have money in the credit union have nothing to fear. He said the HCU group has assets of between $700 million and $800 million with liabilities at $200 million.

The biggest single liability is a $4 million mortgage owed to Intercommercial Bank. He said other priorities include debts from the court hearing and deposit repayments to its 160,000 members.

About 40,000 members have left the institution within the last few years but the organization believes that the court's decision to freeze the assets and ensure debt repayment will safeguard the survival of the business.

He said the assets include land, housing settlements, two radio stations, a medical centre, a bank and a security firm.

One of those radio stations - Shakti97.5fm hotlikepepper is owned by media company Upward - Trend Entertainment Limited, which sells air time to the Hindu Credit Union.

Labour Minister Rennie Dumas confirmed Wednesday that the ruling was backed by the company's board members. Dumas told reporters at a news conference that it was the cooperation of the HCU board that helped expedite the process.

Information Minister Neil Parsanlal told the Express the liquidation company is now waiting for the ministry-appointed auditors Ernst and Young to fully access the value of all the company's assets before the sale of any of the properties is arranged.

He also said that debts from the court hearing and deposit repayments to members are among the top priorities in the repayment scheme, though he said the board along with the liquidator would have to finalise the list of priorities.

Harnarine told the Sunday Express recently that the credit union had paid out $420 million to frustrated depositors who initially could not access their money.