HARLEQUTN PROPERTY (SVG) LtM\TED
PO Box 7631, First Floor
St Vincent Building & Loan Association Building
Corner of Halifax Street and Whitechapel
Kingstown
St Vincent & The Grenadines
Mrs Sharda lJollels
S upelvisol of Iusolvency
c/o I;inancial Services Authority
2"'r I.'loor', Ileigate Iluilding
Bank o1'St Vincent & ]'he
28tr' Octobcr 2016
Grenadines
Kingstown
St Vinccnl.
Dcar Maclanr
IN THI,I, MATTBR OF the Bankntptcy ond Insolvency Act (Cap. 136 of the Larvs of
Saint Vincent and the (irenadincs, Reviscd Edition 2009X*BIA")
AND IN 'l'HE MATTEII OF the Intention to Makc a Proposal of Harlcquin Propcrty
(SVG) Limitctl ("Company")
urther to the lettcr of KPMG Eastern Caribbean datecl 1 3tl' October 20 I 6 ancl in accordance
with Section 29(2)(a)-(c) of the BIA under the Laws of St Vincent & The (irenadines. plcasc
F
now lind enclosed:
I
.
2.
3.
4.
flow statct'uent and assumptir:ns of the Comparry indicatirrg its projectcd cash
flow for a the period rveek ending 9'r' Oclober 2()16lo 9'l' April 2017 (s29(2)(a) of the
BrA).
A report on reasonableness ol'the cash flow statement ir-r prescribed Forrn 35 prepaled
and signed by KI'}lt4G as Proposal Truslee (s29(2Xb) of the BIA).
I{eport of 'Irirstee on Non-F-iling of 'lnrstee's Report on Clas}r Flclw Statement ou l3rl'
October 2016 in prescribed Fornr 39.
A repon containing prescribed representations by thc Cor::pany regarding preparation
ol'the cash flow statcment in prescribeclForm 3(r plepared and signcd by the
Cash
Clornpany as insolvcrtt person (s29(2Xc) of the
IllA),
Harlequin Property (SVG) Ltd is n con'tpa0y irrco;poratecl lit Saint Vincent and lhc Grcnadines under regi;tration nulrttler 139 of 2005 tlith
its tegistered oifice iocatod at PO Box 1631, Firgt Fioor, St Viocerl Uuiiding "q Loan Associetion Building, Corner of Halifax Stre€l and
Vy'hit(ichapoi, r.inBsto'dn, St vincerli 8" The G.enadrtros
Shoulci you havc itnl,quclics ol rcc}rile auy lirrtlicr inlilrrttaiion. plcrasc ctrtttac:t Ilriatr
'l'rustcc ol'lil)ivI(i liaslcrrn Calibbcan on (784) 5622669 ()r' b), c-urail 'it
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Yours lirithlirlly
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Owncr, I'Iarlequin Propcrt1, (SVG) Linrifecl
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Harleqirin Property (SVG) ttd is.r cortpany irlcorporiled iri SailI Vinarnt
iis rcflistotec o{,icc loca',c(l .tt t)O Box 1631, f:irtl. f loor. S'r \'/irlclrlt iju
\virilcci)irt)si, l'(irt:1slow,t, Si Vincr)r)i & Tllo Grit.l.laji rlPi
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tlith
of Hillif,rx Stre{:!
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ar'rc thc Grcrl.iciirle:s rin(lci rey,islral,orr rrLr:rriicr
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Loarr r^\sscaiaiioil iirildil:E, Cciircr
i39 ol
FORM 35
Trustee's Report on Cash-Florv Statement
(Regulation 86(lxb) and Seclion 25(14Xb) of the Act
(Title Form 1)
The attachcd statement of projccted cash llow of Harlequin Property (SVG) Limited, as oI the
of October, 2016, consisting of a 26 rveek cash llow forecast e nding 9th April 2017, has becn
prepared by the managerncnt of the insolvent person, using the probable and hypothetical assumptions
set out in thc Assumptions attached.
28'h day
Our review consisted ofinquirics, analytical procedures and discussions related to inforrration
to us by the rnanagement and ernployees of the insolvent pcrson. Since hypothetical
assumptions need not be supported, our procedures rvith respecl to them werc limited to evaluating
whethcr thcy were consistcnt with the purpose of the projection. Wc havc also reviewed the support
provided by managcrnent for the probable assumptions and preparation and presentation of the
supplied
projection.
Based on our review, we note that rnanagcment of Harlequin Property (SVG) Limited has
is able to continue to accept final cornpletion monies with a view to
properties
to purchasers and to use these proceeds to rnake disbursements
conveying tuily constructed
relating to operational and proposal specitic costs. Thc Proposal Trustee notes that should the company
enter bankruptcy. these transactions may amount to voidable preferences pursuant to Sections 83 and
or 84 of the Bankruptcy and Insolvcncy Act, Cap. 13(r o[ thc Laws oi Saint Vincent and the Grenadines,
(Reviscd Edition 2009) ("the BIA") by a trustce in bankruptcy and appropriate court directions are
assumed that the company
likely to be required in this regard.
Notwithstanding the above, we also highlight thc lirnited headroom (available cash) throughout the
forccast period. Any rcceipts which are not rcceivcd per the cash flow will directly impact thc ability
of cornpany to pay its future commitments. Wc will continue to monitor this position on a wcekly basis
and make any report necessary pursuant to Section 29(1) of thc Act.
Since the 3'd October 2076, lhc date thc notice of intention was filed, the Company made paymcnt of
G8P85,133 to Buccament Bay Resorts Limited to provide operational funding to the hotcl.
Managernent have indicated that the movcment ol lunds bctwcen the hotel management company,
Buccament Bay Resorts Limited, and the company is not uncommon and is controllcd via thc
monitoring of the intercompany accounts. Wc have indicatcd to the Cornpany that this should not occur
going tbnvard and no further lunding is lorecast during the cash flow forecast pcriod.
Apart front the above nothing has coilc to our attention that causes us to believe that, in all rnaterial
respects,
(a) thc hypothetical assumptions
are not consistcnt with thc purpose of the projection;
(b)
as at the date of this report, the prohable assumptions developed are not suitably supported
and consistent with the plans of the insolvent pcrson or do not provide a reasonable basis ibr
the projection, given thc hypothetical assumptionsl or
(c)
the projection does not reflect the probable and hypothetical assumptions.
Since the projcction is based on assuutptions rcgarding future evcnts, actual rcsults lvill vnry
lrom the inlbrmation prcsentccl cveu if thc hypothctical assurnptions occur, and thc variations rnay bc
qraterial. Accordingly, wc exprcss no assurance as lo u,ltcthe r thc ltrojcction rvill tlc achicved.
The projectictn has been prcpared solcl1, for thc purposc clcscribcd under thc BIA and rcaders
are cautioncd that it rnay not be appropriatc lbr othcr llurpclscs.
Darccl at Kingstorvn, St Vincent
ct'fhe Grcnaclincs, this 28'r'day oI Octobcr, 2016.
(Trustce)
ITOIiM J(r
llcport ou Cash-l;low Slatcnrent by tltc l)erson Making tlrc Proposal
(llegulatiorr 86(lXt) ancl Section 25(la)(c) of tho Act
('l'itlc Iirrnr I )
I, Ilarlequin Propcrty (SVC) Lirnitcd, have clcvelopcd tlre assunrl)tiorls and proparcd thc
o1'projcctcd cash flow of the in.solverrt person, as ofthe 28'l'dny Octc:bcr,
consisting ol lbrecastcd projccti<lr:s bctwccn wcck cncling 9'l' October 20 l6 to 9rr' April 20 I7.
a{.taclrccl up<latecl statenrellt
20 16,
'l'he lrypothetical assumptions arr reasonable and consisteut rvith the purposc olthe
pro.iection, ancl thc probable assurnptions are suitably supported and consistent witlr thc plaus of the
insolvcnt pcriion and providc a reasonable basis for thc prqiection, AII such assurnptiorrs are disclosed
in Notcs l-15 in the assumptions section of the cash-flol ,prepared for the trustee.
Sincethe pro.iection is based on assurnptiorrs regarding future events, actual results will vary
frorn the infbrmation prescnted, and the variations may bc nraterial.
1'he projection has bcen prepared solely for the purpose describcd in the Act, usirrg a set of
lrypothetical and probable assurnptions set out in Notes I -15 in the assurnptions .scction of the cashflow prepalcd for thc tnrstec, Consequcntly, r'eadcls are cautionctl that it nray rrot be appropriate for
other purposcs.
, tlris 28tl'day of October,2016.
Dated at
n Property (SVC) l,imited
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FORM 39 (Amended)
Report of Trustee on Non-filing of Trustee's Report on Cash Flow Staternent
(Regulation 86(1Xb) and Section 25(14Xb) of the Act
(Title Form 1)
I, Brian Glasgow, or KPMG Eastern Caribbean, the trustee under notice of intention to make
proposal filed by Harlequin Property (SVG) Limited, an insolvent person, hereby report to the
Supervisor of Insolvency as follows:
a
1.
The insolvent person did, on the 3'd day of October, 20L6, file with the Supervisor of
Insolvency a notice of intention to make a proposal.
2.
A projected cash flow statement was filed by Harlequin Property (SVG) Limited within
the period of 10 days after the filing of the notice of intention but I, as Trustee, was
unable to provide to the company a report on reasonableness in the prescribed form
within the prescribed time.
3.
A report on reasonableness has now
been provided to Harlequin Property (SVG) Limited
dated 28th October 20L6 and the company has filed the said report with the Supervisor
of
Insolvency.
Dated at Kingstown, St Vincent & The Grenadines, this 28'h day of October, 2016.
Brian Glasgow
(Trustee)
hssumptions
Receipts
7
Completions
2
Olher SVG Sales
Based on the dates of amounls and ompletion sums per the property contracts
Othet sales include sales of redundant building materials other incidental redundant assets
KPMG Fees ($250k-s2sk)
Estimated Trustee {ees
Trustee Legal Fees
Rental returns payable
lndependenl legal Advice required by the Proposal Trustee
No future rental return payments will be made during the drafting of the Proposal
Based cn current estimate ofcompletion works and general maintenance
Payments
4
5
6
Euilding/Maintenaoce Work
7
Administration Costs
Cort ofSales (5%)
I
Legal Fees
10
Misc Disbursements e.g Travel Costs
Updated valuation
Administrative costs include statfwages, office costs, and other administrativeservicing costs
5% commision paid to sales staff for cash collections
€xternal leBal tees in relation to Seneral Company matters as well as advice regarding the Company's proposal
Miscellaneous cost5 relating to the management of the Company
14
Quantity Surveyor Report
lnvestment in new Hotel Management Co
Short-term 0perator Bridging Loan
Ertimated cost for updated Valuation of Buccament Bay Property
Estimaied coSt for Preparation of a Report on Future Construction aod Development
Estimated cost for transition period of appointing a new Hotel Management company at Buccament Bay
No future loans are forecast ln the current forecast period
1S
Closing balance
All monies to be isolated to a single bank account which will be monitored weekly by the Trustee, Small overdrawn
positlons in the cash flow will be monitored carefully and the timing of cash payments will be phased to ensure the
11
12
73
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Httlequiri Prope(y
(sVGJ
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26 Week aash Flow forecart (ctsP!
Commenijng: 03 Ortober 2016
6BP
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1011i/2o16
10y'e12016
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Cospi6tror-s
30,c0c
Orher gVC 5a;e5
Total Receiots
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taymenB
LAV,s.ri
jtclud
1
4,C@
4.000
175,S00
4.000
4,000
179,000
:
i
(PiUG FeerrSl5Ckl
"lrqslet Legal fee!
ftental Acuio! Payabie
Build,rgl|"liir{ena n{q W"r!
.(dfirniciraticq Ccrts
Sliei
Lerrl Frlet ,
Cosi Di
{5?r}
23,174
4.065
4,A63
4.C00
4.1{0
5C,O00
90.004
15,000
2.C00
1.?7',
r,500
1C.,000
M$c Dllburieme*rs e.g Tralel Ccrt6
Up<jrted Valu.tion
Qgatrtrty guLeyo6 Rrpcrt
investment in revr Hcttl Mnnogery.e4t Co
SrorJ-tern i)erator Eridgine Lcrn
fqtal Paym:ots
Re.eiptg
les'5
Payornts
z7,31
9,4.!5
I
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:
t-llrning inih Enlrica
426
Clo5lng Cash galanae
,.4.147
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