Caribbean Cement Company Ltd. (CCC) – Director Resigns & Other matters

Director Resigns

Mr. Henry Fullerton has resigned as a Director of the company with immediate effect from February 24, 1998, subsequent to the Directors’ meeting held that morning. Mr. Fullerton was a member of the Board of the company and of its Finance and Audit Committee.

Other Matters Re: The company’s position regarding Carib Cement and Caldon Finance Group Ltd. of which Mr. Fullerton is Chairman and principal shareholder. Mr. Fullerton on Monday February 16, 1998 announced that the company had gone into voluntary liquidation. At the 26th of February Caldon was indebted to Carib Cement in the sum of $178,470,079.14 plus interest. The company was indebted to Caldon Group in the sum of $112,400,000 plus interest . Both transactions were evidenced by promissory notes.

Caldon Group held six notes which have matured and which they purported to endorse to Caldon Finance Merchant Bank Ltd. after their announcement of their voluntary liquidation. Caldon Merchant Bank, after the appointment of its temporary manager, purported to endorse the notes to Jamaica Money Market Brokers Ltd. (JMMB).

Carib Cement has refused to pay the six notes as claimed by JMMB. The basis of this refusal is the advice received from Carib Cement’s attorneys-at-law that their are legal questions relating to misrepresentation and breaches of the legal prohibition against fraudulent preference which could affect their liability in respect of these notes. The company is moving rapidly to have the matter clarified so that they can pay the amounts due.

The company says it continues to pay all other notes issued by it as they become due including another note for $30 million which was paid to JMMB on February 27, 1998.