A significant development has occurred between the Financial Services Commission (FSC) and Caydion Campbell, the appointed trustee for Stocks and Securities Limited (SSL), as they work together to finalize a trustee report ahead of a crucial creditors and claimants meeting scheduled for October 25.
Following his reinstatement in May, Justice David Batts instructed Campbell to create a comprehensive report outlining SSL’s current status. Campbell submitted the report on September 25, just a day prior to an open court session. However, the FSC, represented by its new attorney, Symone Mayhew, expressed concerns regarding the report’s format and content, stating it did not meet regulatory standards.
In a meeting lasting nearly three hours, Mayhew and Campbell’s attorney, Caroline Hay, managed to resolve their differences. They agreed on necessary amendments to align the report with the requirements stipulated in the Insolvency Act. The revised report is expected to be submitted on Tuesday, followed by a two-hour hearing on Thursday to address any further objections the FSC may have regarding the amendments.
During the initial discussions, Mayhew emphasized the importance of the report’s presentation, asserting, “This is not merely a matter of semantics, My Lord. This document is intended for the creditors. Therefore, we strongly oppose its current form for creditor circulation, as the report to creditors is fundamentally distinct.”
At the hearing on September 26, the FSC sought to have the trustee’s report sealed, citing concerns about its implications for public trust in the financial sector. Mayhew elaborated on specific aspects of the report, drawing on precedents from other jurisdictions to illustrate her points. She argued that the report, as currently structured, would not only mislead creditors but also fail to serve the interests of the bankruptcy estate, contravening Section 39 of the Insolvency Act.
In response, Hay highlighted that several components of Campbell’s initial submission were compliant with Section 233 of the Companies Act. She also raised concerns about the FSC’s proposal for a separate report to isolate contentious sections, arguing this would incur unnecessary expenses and complicate the process before the first creditors’ meeting.
The discussions also touched upon Section 233, which mandates the trustee to submit an initial report to the court, and Section 39, which outlines the requirements for the creditors’ first meeting report. Both attorneys engaged in a thorough debate about the nuances of these regulations and their practical implications.
Justice Batts referenced the Bob Marley case, emphasizing that trustees must exercise caution and not advocate for any specific position.
Additionally, Campbell’s request for management fees was postponed until after the creditors’ meeting, at which point the matter will be revisited to determine if those fees can be approved.
Caydion Campbell is represented by Caroline P. Hay, Attorneys-at-Law, while Symone Mayhew advocates for the FSC. An attorney from The Office of the Supervisor of Insolvency (OSI) was also present to observe the proceedings.
