Oct 2014 Financial News

TCL places hold on all debt payments and sacks CEO Dr Rollin Bertrand

Oct 01, 2014

Following a financial assessment of Trinidad Cement Ltd (TCL) by PricewaterhouseCoopers (PwC), TCL has decided to place a hold on all payments due under the existing restructured loan agreements and has proposed a “standstill.” The decision to propose a standstill came after TCL met with its lenders on Monday to update them on the present state of the company.

“Subsequent to the meeting, the board of directors took a decision to place a hold on all payments under the existing restructured loan agreements and proposed a standstill,” read a notice TCL yesterday issued to its stakeholders. TCL said a comprehensive restructuring plan will be submitted by October 31, which will include “actions to preserve” the ongoing operations of the company, and to ensure its overall long-term viability.

In the notice, TCL also advised that Dr Rollin Bertrand, who was TCL Group chief executive officer who had been suspended by the new board, has since been terminated.

Bertrand, along with chairman Andy Bhajan, Carlos Hee Houng, Bevon Francis, Leonard Nurse and Brian Young, tendered their resignations minutes before a group of shareholders met to have them removed at the August 19 special compulsory meeting held at the Radisson Trinidad hotel, Wrightson Road, Port-of-Spain. Although he resigned as director at the special meeting, Bertrand retained his position as chief executive officer.

Immediately after the special meeting, the new board, comprising businessman Wilfred Espinet, retired public servants Alison Lewis, Jamaican business executive Chris Dehring, Port-of-Spain attorney Glenn Hamel-Smith, UTC executive Nigel Edwards and Cemex executives Carlos Palero and Francisco Aguilera, met and voted to suspend Bertrand for 30 days.

At the time, new TCL chairman Espinet said, “They suspended him because there were some concerns that the shareholders and directors had. We needed to make sure the proper process has been followed in giving Dr Bertrand a chance to, first of all, analyse whether or not there was any issue that we saw that was not in keeping with normal practices,” Espinet said.

Espinet said that Bertrand’s suspension should last no more than 30 days while a review of his performance was done. In yesterday’s notice, TCL said Bertrand was terminated as Group CEO following a review of his performance by the board of directors. This decision was taken when the board met on September 18, and was communicated in a September 22 letter addressed to Bertrand and delivered to him on September 23.

Regarding legal matters involving shareholders, TCL said that on September 18, the matter Wilnet Holdings Ltd and Ors vs TCL and Republic Bank Ltd, came up for case management conference before Justice Frank Seepersad, who gave leave to the parties for the action and ancillary action to be discontinued.

TCL said leave was granted on its own undertaking to pay the costs of the claimant and joined defendant (Republic Bank) to be assessed in default of agreement. These costs are to be certified fit for senior counsel for the claimants and the joined defendant. Also, in the matter between TCL and Kamal Ali, TCL on September 29 filed a notice of discontinuance with an agreement to pay the defendant’s costs in the proceedings fit for senior counsel.

Prior to the special meeting, TCL directors had filed an action against one of the group’s shareholders, Kamal Ali, who had issued the notice for the meeting. The shareholders got the green light to meet after a High Court judge dismissed an injunction application by TCL directors which sought to block the  meeting.

Source:
Trinidad Guardian
Wednesday October 1, 2014

http://www.guardian.co.tt/business/2014-10-01/tcl%E2%80%88places-hold-all-debt-payments