HARLEQUTN PROPERTY (SVG) LtM\TEDPO Box 7631, First Floor

St Vincent Building & Loan Association Building

Corner of Halifax Street and Whitechapel

Kingstown

St Vincent & The Grenadines

Mrs Sharda lJollelsS upelvisol of Iusolvencyc/o I;inancial Services Authority2"'r I.'loor', Ileigate IluildingBank o1'St Vincent & ]'heGrenadinesKingstownSt Vinccnl.

28tr' Octobcr 2016

Dcar Maclanr

IN THI,I, MATTBR OF the Bankntptcy ond Insolvency Act (Cap. 136 of the Larvs ofSaint 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")

F 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

now lind enclosed:

I . Cash 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).2. 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).

3. 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.

4. 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

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

Yours lirithlirlly

Shoulci you havc itnl,quclics ol rcc}rile auy lirrtlicr inlilrrttaiion. plcrasc ctrtttac:t IlriatrGltrsgoiv. I)r'o1;osal 'l'rustcc ol'lil)ivI(i liaslcrrn Calibbcan on (784) 5622669 ()r' b), c-urail 'it

bri a n gl ip go u:tiltlltrt g. vc.

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paviil-i\mcsOwncr, 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

ar'rc thc Grcrl.iciirle:s rin(lci rey,islral,orr rrLr:rriicr i39 ol ?C05 tlithclanil & Loarr r^\sscaiaiioil iirildil:E, Cciircr of Hillif,rx Stre{:! (rrlaj

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

28'h day 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.

Our review consisted ofinquirics, analytical procedures and discussions related to inforrration

supplied 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

projection.

Based on our review, we note that rnanagcment of Harlequin Property (SVG) Limited has

assumed that the company is able to continue to accept final cornpletion monies with a view to

conveying tuily constructed properties to purchasers and to use these proceeds to rnake disbursements

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

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 ofG8P85,133 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 ibrthe 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

a{.taclrccl up<latecl statenrellt o1'projcctcd cash flow of the in.solverrt person, as ofthe 28'l'dny Octc:bcr,

20 16, consisting ol lbrecastcd projccti<lr:s bctwccn wcck cncling 9'l' October 20 l6 to 9rr' April 20 I7.

'l'he lrypothetical assumptions arr reasonable and consisteut rvith the purposc olthepro.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 oflrypothetical and probable assurnptions set out in Notes I -15 in the assurnptions .scction of the cash-

flow prepalcd for thc tnrstec, Consequcntly, r'eadcls are cautionctl that it nray rrot be appropriate forother purposcs.

Dated at , tlris 28tl'day of October,2016.

-" /t i'J'i . !ir( -v' '!

It

!

n Property (SVC) l,imited

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

a proposal filed by Harlequin Property (SVG) Limited, an insolvent person, hereby report to the

Supervisor of Insolvency as follows:

1. The insolvent person did, on the 3'd day of October, 20L6, file with the Supervisor ofInsolvency a notice of intention to make a proposal.

2. A projected cash flow statement was filed by Harlequin Property (SVG) Limited withinthe 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 formwithin the prescribed time.

3. A report on reasonableness has now been provided to Harlequin Property (SVG) Limiteddated 28th October 20L6 and the company has filed the said report with the Supervisor ofInsolvency.

Dated at Kingstown, St Vincent & The Grenadines, this 28'h day of October, 2016.

Brian Glasgow

(Trustee)

hssumptions

Receipts

7

2

Payments

4

5

6

7

I10

11

12

73

14

Completions

Olher SVG Sales

KPMG Fees ($250k-s2sk)

Trustee Legal Fees

Rental returns payable

Euilding/Maintenaoce WorkAdministration Costs

Cort ofSales (5%)

Legal Fees

Misc Disbursements e.g Travel Costs

Updated valuation

Quantity Surveyor Report

lnvestment in new Hotel Management Co

Short-term 0perator Bridging Loan

Closing balance

Based on the dates of amounls and ompletion sums per the property contractsOthet sales include sales of redundant building materials other incidental redundant assets

Estimated Trustee {ees

lndependenl legal Advice required by the Proposal TrusteeNo future rental return payments will be made during the drafting of the Proposal

Based cn current estimate ofcompletion works and general maintenance

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 CompanyErtimated 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

All monies to be isolated to a single bank account which will be monitored weekly by the Trustee, Small overdrawnpositlons in the cash flow will be monitored carefully and the timing of cash payments will be phased to ensure the1S

--BltA^t' 6,_rls (7atue

Ha "\ec\i.;-r P,-s 1r*t r.. $r, c\ r-tcr.

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'L'1:Httlequiri Prope(y (sVGJ ttd26 Week aash Flow forecart (ctsP!

Commenijng: 03 Ortober 2016

6BP 1

t:Re{eip!5 :

Cospi6tror-sOrher gVC 5a;e5

Total Receiotsta

:

taymenB i

(PiUG FeerrSl5Ckl"lrqslet Legal fee!ftental Acuio! Payabie

Build,rgl|"liir{ena n{q W"r!.(dfirniciraticq Ccrts

Cosi Di Sliei {5?r}

Lerrl Frlet ,

M$c Dllburieme*rs e.g Tralel Ccrt6

Up<jrted Valu.tion

Qgatrtrty guLeyo6 Rrpcrtinvestment in revr Hcttl Mnnogery.e4t Co

SrorJ-tern i)erator Eridgine Lcrn

fqtal Paym:ots

Re.eiptg les'5 Payornts:

t-llrning inih EnlricaClo5lng Cash galanae

w..r.nd4 LAV,s.ri 1011i/2o16

jtclud ,

10y'e12016

30,c0c

4,C@

175,S00

4.0004.000

4,000 179,000

4,A63

4.C00

5C,O00

2.C00

23,174

4.1{090.004

1.?7',

1C.,000

4.065

15,000

r,500

9,4.!5 '?],t?4

z7,31 I

426,.4.147

-5BAtAb A uAsbtzat

-{)J)/rJ

wJ,4lt0

^L'

(.,?.

uC,

u6

i$l{

rl :

#

a- fL dl q i.l r:.s a6floer

96 5 i)io r) r:cri

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