Al Edwards, financial co-ordinatorLast Friday January 18, the Minister of Finance and Planning, Dr. Omar Davies was expected to make an announcement concerning the sale of Finsac's assets. However, that has been postponed leading to rampant speculation that a case pending in the Supreme court brought by the Debtors Resolution Action Committee (DRAC) has forced a re-evaluation of the deal.
Dennis Joslin Company, LLC, a United States firm based in Dyersburg, Tennessee, which specialises in purchasing non-performing loans for restructuring or resolution, has sent the company's founder Dennis Joslin to Jamaica with a view to acquiring the Finsac Limited bad debt portfolio valued at approximately US$800 million.
Sunday Business made enquires at the company's head office in Dyersburg, Tennessee, last week and was told that Mr. Joslin was currently in Jamaica.
When contacted locally Mr. Joslin said, "At this point in time I have no comment to make but if Finsac were to make an announcement in the near future, I will address all your questions."
Co-founder of the company and its chief financial officer, Mr. Joslin has been a certified public accountant for 28 years.
The company buys pools of debt instruments from Government and private institutions, having purchased over 6,000 loans with balances of over US$425 million. It has purchased 200 pools of loans with an average bid of US$280,000. Dennis Joslin Company LLC claims to average US$136 million per year in receipts and says it has never failed to close on a bid submitted.
The Government turned to the American distressed asset service provider Ocwen to handle the bid process on behalf of Finsac in the offering of over 17,000 assets.
Finsac has made it clear that the portfolios will be divided into multiple loan pools of residential and commercial real estate assets, business assets and secured and unsecured consumer debt.
Attempts to rid itself of the debt packages have met with sustained resistance from the Debtors Resolution Action Committee (DRAC) led by Percival LaTouche. In May of last year, DRAC filed a class action suit in the Supreme Court to challenge Finsac's authority to transfer debtors' accounts to a foreign company.
Last week DRAC put out a release that read: "Debtors Resolution Action Committee Chairman Percival LaTouche wishes to state buyers beware. Having observed today in Section D of The Gleaner's Business section under the headline 'U.S. firm Eyes Finsac bad debt portfolio' DRAC is again obliged to make public that a suit #M 81 of 2001 is pending in the Supreme Court of Jamaica relating to the "bad debt portfolio" of Finsac.
"To owe money does not necessarily create a bad debt and we would urge the U.S. firm of Dennis Joslin Co. and others to be advised of the details of the courts and preferably await the determination of the courts, the trial of which begins Monday 21 of January 2002, before becoming embroiled in such a transaction. Finsac should not attempt to transfer or dispose of the said subject matter. Dr. Davies and his Government please take note."
In July of last year, a division of one of the world's largest private companies Cargill's Asset Investment and Finance Group (AIF) held talks with both Government officials and private interest groups with a view to acquiring the Finsac bad debt portfolios.
In the wake of the West Kingston uprisings that month, Cargill decided not to follow through on a deal.
On Friday evening, the Ministry of Finance and Planning issued a release that said : "Sections of the media have made suggestions about the stalling of negotiations, based on a legal challenge.
"Mr. Patrick Hylton, managing director of Finsac has advised that there is no truth in that - there is no stalling of the transactions on the basis of any legal challenge.
"Mr. Dennis Joslin, the American investor, is in the island and we continue to negotiate in good faith, and at an appropriate time an announcement will be made."
