AIC FINANCIAL - in trouble - YES or NO!!

[ray d saint]

http://guardian.co.tt/business/business ... rey-s-fate

This column came about as a result of a telephone call I got about a month ago from an accountant who has a keen interest in the rights of shareholders. The accountant alerted me to the annual report of AIC Finance, the Maraval-based non-bank financial institution owned by former Jamaican billionaire Michael Lee Chin, which was published in the Trinidad and Tobago Guardian on September 4. Of significance in the accounts, which were audited by PriceWaterhouseCoopers, was the fact that they were being published nearly a year after the end of the company’s September 30, 2008 year end and nine months after the accounts were due. The financial report indicates that AIC Finance declared a loss of $10 million during 2008.

Also of great significance was the fact that the accounts revealed that AIC Finance experienced what the financially troubled non-bank financial institution described as a “temporary breachâ€

[hydroep]

[twisha]

pricewaterhouse in the papers again

[horsepwrjunki]

lawrdie... here we go again.. i wonder what they go give this time that cib nonsense was harsh no m/c...

[Bareback]

Have you asked yourself why AIC Mutual Funds was sold to Maritime Life??? For almost a decade they have seen a steady and continuous withdrawal from their funds due to inconsistent performance and, most importantly, underperformance compared to their peers in all asset classes.

Michael Lee Chin is a micro-manager and will not let his fund managers manage the funds they were hired to managed. As a result AIC Funds has been a revolving door for fund managers. This is only one aspect of his major failures due solely in part to a lack of trust and preparation for the recession that hit the world.

Like CLICO, the writing was there for those who chose to see past the glamour of high salaries apparent over the top returns. The end result is "fail to prepare, prepare to fail!"

[pugboy]

so their reserves dipped below the legal requirements plus they couldnt give annual reports whilst they ratching the books and the regulators sitting and watching ?

[noobie]

http://guardian.co.tt/business/business ... rey-s-fate

This column came about as a result of a telephone call I got about a month ago from an accountant who has a keen interest in the rights of shareholders. The accountant alerted me to the annual report of AIC Finance, the Maraval-based non-bank financial institution owned by former Jamaican billionaire Michael Lee Chin, which was published in the Trinidad and Tobago Guardian on September 4. Of significance in the accounts, which were audited by PriceWaterhouseCoopers, was the fact that they were being published nearly a year after the end of the company’s September 30, 2008 year end and nine months after the accounts were due. The financial report indicates that AIC Finance declared a loss of $10 million during 2008.

Good topic..I had totally missed this information.

[Country_Bookie]

so their reserves dipped below the legal requirements plus they couldnt give annual reports whilst they ratching the books and the regulators sitting and watching ?

The law (Securities Act of ’95) requires they submit their financials 90 days after their year end. The problem is that this law doh provide any penalties for companies that fail to do so. The most they mite get is a fine of max $100K form the SEC. Let’s hope they addressed dat in the new Securities Act that was passed in July.

[ray d saint]

UPDATE

Belize bank eyes AIC Finance

BCB Holdings, the bank headquartered in Belize and chaired by British billionaire Sir Michael Ashcroft, is in advanced talks to acquire 75 per cent of AIC Finance, the financially troubled, non-bank financial institution owned by Jamaica’s Michael Lee Chin.

The talks were confirmed by a high-ranking official, who described it as the “most open secretâ€

[RASC]

I had a conversation about this yesterday, my eyes were like upon learning of this

[slick]

former Jamaican billionaire Michael Lee Chin

so he not Jamaican anymore?

or he not a billionaire anymore?

[RASC]

I've noticed also that the Jamaican press has been RATHER quiet on this one also. Not a single article in the Gleaner or Observer

Or maybe I'm not searching well enough...but I just logged on to both their Business sections. NOTHING.

[acesinghit]

Bareback,

Have you asked yourself why AIC Mutual Funds was sold to Maritime Life???

source of info?

[Notorious Scullman]

Whew!!!

To think I almost fell for their pitch a year ago


Is any investment safe anymore?



BTW, does it make sense continuing CLICO Life and pension plans?

[pugboy]

^^the govt/central bank said they backing them

[AbstractPoetic]

Scullman, no investment is really "safe" unless fully invested in less volatile options--like cash and government (not corporate) bonds. But the less risk the less your return, so its ultimately your decision. Its strongly advised to have a little of everything to lessen your chances of profit loss. Mutual funds and target funds with low expense ratios are more favorable than individual stocks or derivative trading. But for the young investor, mutual funds that hold mostly stocks are the "safest" out there. Bonds and cash are for those near retirement and for those more averse to risk.

[AbstractPoetic]

Bareback, very well said. I still do not comprehend why investors choose to invest locally. Earning potentials are drastically limited if you save and invest exclusively in TT dollars and TT markets.

[acesinghit]

believe it or not, the best financial institutions to put your money in continues to be RBTT/RBC, Scotia, FCB, Bank of Baroda and UTC. Talk done. Republic, Sagicor and Maritime could come after.

[panasync]

any further updates on AIC?

[neilsingh100]

This doesn't sound promising. Columbus (aka Flow) and NCB Jamaica may have some new owners soon.

Nov 27, 2009

Holders of AIC (Barbados) notes were yesterday informed that the Michael Lee Chin-owned firm was unable to make good on a promise to honour bond payments which became due today, and were issued with three options by trustee PanCaribbean.

"We were unable to meet our obligations due in part to the prevailing financial crisis which has made it difficult to sell assets," executive director of AIC Global Holdings, Robert Almedia, told the Observer last night. "Nevertheless, we have generated internal cash and are now proposing to pay 30 per cent of the principal in cash."

Added Almedia: "There is an interest payment due today (Friday) and we will meet that. We fully intend and will meet our interest payments going forward. Investors will get the same collateral which is essentially NCB. We will issue a new note for 70 per cent of the face value. It will be a two-year note with a 12 per cent interest rate paid in US dollars on a quarterly basis. I think this is a good deal for the bondholders. Let's not forget that NCB recently posted profits of J$10.2 billion and Columbus Communications has recently completed a US$450-million bond offering. We will make payments as and when we divest the assets and will make good to our bondholders."

According to the PanCaribbean circular, the first option is to accept AIC's offer, the second is to take shares in Lee Chin's National Commercial Bank (NCB), and the third is to give instruction for the shares in NCB to be sold.

Lee Chin, who is also lead principal of Canadian mutual fund company AIC, issued a number of bonds to finance his rapid expansion across the Caribbean. To date his investments in the region stand at around US$1 billion. Having missed a June deadline this year to make good on paying out bondholders of AIC (Barbados), Lee Chin's Caribbean holding company, he was able to secure an extension until November 27. The notes come up to a total of US$155 million.

Interest on the bonds to November was set at 13.25 per cent with around US$109 million in AIC bonds at stake with US$60 million maturing this year. The remainder matures between January 2010 and April 2011.

Bondholders will be holding a meeting a week from today to consider the offers.


Source:
By Al Edwards
Jamaica Observer
Friday, November 27, 2009

http://www.jamaicaobserver.com/news/htm ... SSURE_.asp