Harry raises $300-M to buy back HCU assets & liabilities

Former Hindu Credit Union (HCU) President Harry Harnarine told a meeting of HCU shareholders and depositors Sunday more that 100 businessmen have raised in excess of $100 million, which they hope to use to buy back the credit's union's assets.

And he again refused to ask for or accept a government handout unless members and depositors demand it through a vote.

Harnarine distanced himself from the Credit Union Members Group (CRMG), which comprises depositors, shareholders, members and employees of the HCU. The group has been seeking a $300 million loan from government as part of a restructuring plan to make the HCU solvent again. The plan would eventually sell off most of the HCU assets and return it to just a credit union operation.

The one Harnarine envisages is a revival of the whole operation by injecting $300 million into the organization to recoup the reported shortfall between assets and liabilities. It's a plan that Chaguanas West MP Jack Warner is supporting and for which he has already pledged $1 million (see story below).

The new company would buy back all the assets and liabilities from the government-appointed liquidator and restructure itself with a new board and management that would include the new investors as well as representatives of existing shareholders and depositors.

Harnarine told depositors they must not be fooled into believing that a government bailout would mean they would get their money immediately. Previous talks with government to give members and shareholders first preference to buy the HCU have failed.