JUTC Makes $3m Payment to Avoid Bankruptcy Declaration

The Jamaica Urban Transit Company, JUTC, this afternoon made a payment of $3-million to avoid the Supreme Court making an order that it be declared bankrupt.

Last month, the Supreme Court was asked to declare the state-owned bus company bankrupt and to liquidate its assets.

The requests were made by attorney, Lemar Neale, of the firm Bignall Law.

Mr. Neil made the request that the JUTC’s assets be liquidated on behalf of six claimants who are owed $9-million by the state-owed bus company.

The matter was mentioned in chambers today before Justice Bryan Sykes.

It’s understood lawyers for the JUTC argued that public interest should prevent the Court from ordering that its assets be liquidated.

But when Justice Sykes was not persuaded, the lawyers for the bus company produced a $3-million cheque to be paid to the claimants.

The JUTC lawyers requested until August to pay the remaining $6-million.

However, Justice Sykes ordered the company to pay the outstanding money by the end of July this year.

Court documents reveal the six claimants are applying for a Receiving Order under the new Insolvency Act to declare the bus company bankrupt and be placed in receivership.

The claimants are also seeking to appoint the Government Trustee as an interim receiver to take immediate possession and control of the assets and properties of the JUTC.

The creditors are alleging the company committed an act of bankruptcy in not meeting its liabilities as they become due.

The sums owed by the JUTC to the claimants resulted from successful personal injury claims brought between 2008 and 2013.

The creditors say the JUTC failed to honour its agreement or settle the judgment debts.

The JUTC was represented in Court today by attorneys from the law firm, Myers, Fletcher and Gordon.

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