By NEIL HARTNELL
Tribune Business Editor
A former Bahamian bank’s creditors have been approved to receive a collective $15.635 million first dividend - a sum that pales in comparison to their collective $335.367 million loss.
Craig A. ‘Tony’ Gomez, the Baker Tilly Gomez accountant and partner, in his December 20 report to the Supreme Court on Leadenhall Bank & Trust Company’s liquidation, disclosed that the bulk of the first dividend - some $14.49 million - went to victims of the former Cash 4 Titles Ponzi scheme.
They also represent the bulk of the losses, which means that Leadenhall’s other creditors were close to recovering a good $0.80-$0.90 out of every $1 owed to them until the courts ruled that a $330.228 million Florida judgment against the bank - and in favour of the Cash 4 Titles victims - should be accepted by the liquidator.
With some $6.845 million in assets left on the balance sheet, Mr Gomez’s report makes clear that Leadenhall’s winding-up is almost complete.
Apart from locating remaining creditors due a collective $847,295 from the first dividend payment, the accountant makes clear that his last task will be to pay a second and final dividend from the remaining assets.
Elsewhere, Mr Gomez said he had reached a $1.255 million settlement with a former borrower from Leadenhall, Canada-based Nuvo, in which he agreed to write-off some $524,231 due on an outstanding $1.779 million loan.
He disclosed that he had also received $11.559 million on a surrendered insurance policy that Leadenhall held with Generali, while talks were ongoing with Caledonia Corporate Management’s liquidator about “off balance sheet assets” that had been held for the bank by the insolvent broker/dealer.