The Tribune

By NEIL HARTNELL

Tribune Business Editor

A SECOND arm of Owen Bethel's Montaque Group is being wound up, one of its liquidators telling Tribune Business that this company, too, is "insolvent".

Ed Rahming, accountant and managing director of KrYs Global (Bahamas), told Tribune Business that the liquidation of Montaque Corporate Partners would help to "facilitate" the winding-up of its sister firm, Montaque Capital Partners, which is already in court-supervised liquidation before the Supreme Court.

Confirming that the two companies, both wholly-owned subsidiaries of the Montaque Group, were "inextricably linked", Mr Rahming said Montaque Corporate Partners' liquidation would not become court-supervised because it did not have enough remaining assets to pay for what would be a relatively expensive process.

Messrs Krys and Rahming had previously indicated, in a report to Montaque Capital Partners' creditors, that they would likely seek to have its sister company wound-up due to the high volume of inter-party transactions that had taken place between them. Thus their appointment as Montaque Corporate Partners' liquidators comes as no surprise to observers of the situation.

"It's a sister company to Montaque Capital Partners," Mr Rahming told Tribune Business of its Corporate sister. "It was the company responsible for the incorporation and management of the [client] International Business Companies (IBCs)."

Asked whether the liquidators would likely apply to the Supreme Court for Montaque Corporate Partners' liquidation to become court-supervised, Mr Rahming replied: "We don't plan to.

"It's fairly simple. Montaque Corporate Partners is insolvent. It is inextricably linked to Capital. The two companies are inextricably linked, and it should be wound-up. We're not going to bring it under the liquidation of Capital; it's just facilitating the proper liquidation of Montaque Capital Partners.

"Corporate is not in a place where it can pay for its own liquidation. It's insolvent, and that's the basis for it being wound-up. Because it's insolvent, it can't fund it's own liquidation, but it will facilitate the proper liquidation of Montaque Capital Partners. Because it was so linked to Capital, it will be covered in our reports."

Tribune Business has attempted to contact Mr Bethel several times over the past week for comment on Montaque Corporate Partners' winding-up, but several phone messages have not been returned.

But, in their first report to Montaque Capital Partners' creditors, dated October 28, 2011, Messrs Krys and Rahming said its corporate affiliate had just a $112 cash balance as at September 30 last year.

The report added that Montaque Corporate Partners was incorporated on May 21, 2004, and obtained a financial and corporate services providers licence from the Securities Commission of the Bahamas on January 31, 2008. This allowed it to provide IBC incorporation and management services; provide registered agent and office services; and offer director and nominee shareholder services.

Messrs Krys and Rahming added that Montaque Corporate Partners managed 277 registered IBCs as at September 30, 2011, but only 77 of those appeared to have investments placed with its Capital affiliate.

"The volume of such investments has not yet been quantified, and is being investigated further by the liquidators," the report said.

"Based on the information reviewed by the Liquidators, it appears that Corporate often paid bills on behalf of [Capital], and vice versa, which appears to account for the majority of inter-company account balances in the accounting records.

"As at 30 September, 2011, Corporate appears to have a cash balance of $112. Financial statements have not been prepared for Corporate, and it appears that Corporate's operations were intertwined with that of [Capital]. It is likely that the liquidators will seek to have Corporate wound-up, and will address this with the Securities Commission of the Bahamas."

Emphasising just how connected the two Montaque entities were, the liquidators' report added: "[Capital] paid substantial funds, estimated to be in the millions, to and on behalf of related entities.

"The Liquidators have not had an opportunity to review these transactions in order to determine what they pertained to, whether they are recoverable and whether they were for the benefit or in the best interests of [Capital]."