PwC selling Cash Plus hotel to recover fees, But legal fight not over

Avia Collinder, Business Writer

The Hillshire Hotel has been placed on the market for sale by PricewaterhouseCoopers (PwC) to recover fees for two employees of the auditing firm that were appointed co-interim receivers of failed investment scheme, Cash Plus.

The property, however, is said to be part subject of a legal dispute to be settled by the Court of Appeal between trustee in bankruptcy, Hugh Wildman, and the joint co-interim receiver-manager, Kevin Bandoian, a chartered accountant of PwC in the United States and another employee of PwC who has not been named.

Bandoian and the unnamed employee were appointed co-interim receivers by the court in March 2008.

A third party to the suit was identified only as 'Monica A', who is a former worker at Cash Plus, according to Kevin Williams, one of three attorneys from Dunn Cox and Orrett who represent the PwC staff.

Williams, to whom Wednesday Business was referred by PwC's Kingston office, said PwC the company is not a party to the suit, which next comes up for hearing on March 16.

A Supreme Court victory in September 2011 approved the sale of assets owned by the defunct alternative investment scheme for payments to service claims against the Cash Plus Investments.

The joint co-interim receivers from PwC indicated to the court that they were owed J$200 million in fees and costs, and a special order was made for the sale of the Hillshire for the purpose of settling the debt to the PwC staff.

William of Dunn Cox and Orrett says that the orders of the court are sealed.

"I am not allowed to comment on the proceedings. They are very sensitive. The orders are sealed by the court which means we cannot comment," he said.

He notes, however, that the co-interim receivers were appointed under Section 2(13)(a) of the Companies Act.

"PwC was never appointed a receiver. Two individuals Kevin Bandoian and another person who cannot be named were the former co-interim receivers. They are connected to PwC. We represent persons connected to PwC," he said.

"It was only when the co-interim receivers were discharged that Wildman was appointed liquidator."

The attorney refused to comment on the costs and fees being claimed by the co-interim receivers.

Wildman said Monday that he is contesting the sale of the hotel on the basis that the decision to appoint the PwC staff as receivers had been a "bad one".

"They want to sell it to realise the balance of their fees. However, the matter is still in the Court of Appeal. They are trying to force our hand," Wildman told Wednesday Business.

The property was advertised for sale in the press.

"By doing that, they want us to settle before the court matter is tried. But, we are not going down that road," said the trustee, referring to the sale advertisements.

Wildman said, last year, that there were J$8 billion in claims against Carlos Hill's Cash Plus. The company was shuttered by the Financial Services Commission (FSC) in 2008, and Hill is on trial accused of fraud.

Hillshire is a boutique hotel comprising 33 rooms and two conference rooms spread across two buildings - 36,722 square feet combined - at Queen's Drive in Montego Bay.

The estimated price is US$3.5 million (J$304 million).

Built in 1985, Hillshire was formerly known as La Mirage under the ownership of Osmond and Marcia Erskine.

The Erskines sold out in 2004 to St Ann businessman Danny Gonzales, operator of Beep Beep Tyres and Batteries, who renamed the hotel Executive Inn.

Cash Plus acquired it two years later in 2006 for an undisclosed price and rebranded it Hillshire.

Valerie Brimo-Marzouca, general manager at the time of opening in 2007, said Hillshire would be capitalising on the concept of entertainment tourism and a gentleman members-only club.

The property is in walking distance of Sangster International Airport.

business@gleanerjm.com