MONDAY?IS?D-DAY?for debt-ridden supermarket chain Trimart and the scores of business houses that it owes more than $15 million.
In effect, the more than 300 creditors will decide Trimart’s immediate future.
They have to vote to accept a proposal placed by the supermarket to take what may be as little as 50 cents in every dollar. If there is no consensus, then it will mean automatic bankruptcy for Trimart and a pittance for the business community which could be as little as less than ten cents in every dollar.
Last December, there was a proposal for as much as 85 cents in every dollar to be paid to the creditors, but with Trimart outlets, Rendezvous in particular, struggling, an amendment has been made to the proposal.
Receiver Grenville Phillips, who has been appointed trustee to act on behalf of Trimart, was in no doubt about how crucial Monday morning’s meeting at the Lloyd Erskine Sandiford Centre, will be.
“The original proposal has been predicated on a certain sum which is to be paid to creditors subject to certain conditions being fulfilled. Some events have intervened which has rendered it necessary to modify that proposal and a new document has been sent to creditors for they to consider the modifications to that proposal.
“That is the document which they have to vote on Monday. Once they vote on and approve that, it will then be a matter of taking the amended proposal into court, to get the court to bless it,”?Phillips said.
Phillips, who will chair Monday’s meeting, says every effort should be made to ensure that Trimart does not go into bankruptcy.
Andy Armstrong will be at Monday’s meeting in two capacities. He will be there in his role as president of the Barbados Chamber of Commerce and also as managing director of Armstrong Agencies.
Armstrong acknowledged the proposal being made was somewhat less than had been proposed a few months ago.
“It is still better to have Trimart continue in business than to have Trimart go out of business which is a possibility we would like to avoid,”?Armstrong said.
Trimart owes R. L. Seale and Hanschell Inniss more than $2 million each. Pelican Market Suppliers Inc. is owed nearly half-million, and Lasco Barbados and Mount Gay more than $100 000 each.
In total, Trimart owes as much as $16 million to more than 300 creditors.