Last Solution

It appears that I have created some confusion and misinterpreted the clever handy work of Dr Fazal “Fraud” Mahmood & Co as the voice of the new owners of First Solution Money Transfer. For that I sincerely apologise to the the Branch Directors and Agents who are the new owners of First Solution Money Transfer Ltd.

I am sure that I am not the only one who has been confused by the Press Statement dated 19th November on E-Bangladesh, which now appears to be the communication from Dr Fraud & Co. I beleive Dr Fraud & Co purposely put that Press Statement on E-Bangladesh to confuse everyone. The author of the Press Statement is rather vague. Once again I apologies to the new owners of First Solution Money Transfer Ltd.

The new owners of First Solution Money Transfer Ltd, headed by Mohammed Abdul Mannan, have released their first Official Press Release refuting claims that they are not the originators of the previous Press Statement. The Official Press Release can be found at the following location;

OFFICIAL PRESS RELEASE FROM NEW OWNERS OF FIRST SOLUTION MONEY TRANSFER LTD

However some of the questions that were raised after the publication of the Press Statement by Dr Fraud & Co, which was first released on E-Bangladesh still applies to the new owners of First Solution Money Transfer Ltd. 

CAN YOU ANSWER THOSE QUESTIONS PLEASE?

 

OFFICIAL PRESS RELEASE: NEW OWNERS OF FIRST SOLUTION MONEY TRANSFER LTD

Date of release: 19 November 2007

People who lost funds in the collapse of First Solution Money Transfer Ltd should get most – if not all - of their cash back, following a rescue deal.

The sudden closure of First Solution Money Transfer Ltd on 28th June 2007 was a major blow to the UK Bangladeshi community which used it to send money to relatives in Bangladesh.

Since then, some of the former agents and branch staff of First Solution, who have been working silently but relentlessly for the last few months on a corporate recovery package to resolve this situation and reach a position whereby all creditors can be paid.

They formed Coastearth Ltd and now, following lengthy negotiations to secure the future of First Solution Money Transfer Ltd, Coastearth is pleased to announce successful conclusion of those negotiations and subsequent completion of the purchase of First Solution and the relevant associated assets.

One of Coastearth’s main intentions in rescuing First Solution is to pay back as much money as possible to people who lost funds, over the next few months. The business will continue to be known as First Solution, although the board and senior management are completely new.

First Solution’s new Chairman, Mohammed Abdul Mannan, said: “There is a tremendous sense of moral responsibility in the Bangladeshi community and we want to do everything possible to protect its reputation.

“We are putting in significant funds straight away to pay back some of the money which was lost. We hope that most – if not all – the money which was lost will be paid back to people from ongoing trading profit of the rescued company, plus other expected contributions.

“What happened to First Solution was a terrible blow to many people. We hope they will see that by rescuing the company, we can restore trust as well as people’s bank balances – and continue to provide a successful and efficient money transfer service. We have also put in place safeguards that should prevent such a catastrophe happening again”

It is hoped that £950,000 to £1.2m will be available to creditors as part of this rescue package. This will be made up of capital investments by the new owners, voluntary commitment from the previous directors and funds realised from sales of assets by the Official Receiver.

The new owners of First Solution Money Transfer Ltd will also put in place the necessary infrastructure, systems and measures to maintain a strong position in the market and prevent any potential risk by being exposed to currency exchange losses.

The previous directors of First Solution, namely – Dr Mahmood, Mr Rumi and Mr Hadi are not part of Coastearth Ltd and will not remain involved with First Solution Money Transfer Ltd and the new setup.

All community leaders, businesses and many creditors who have been helping to find a suitable solution to this unfortunate situation are being requested to continue their support.

Branches who took this initiative are:
Bradford, Bristol, Burnley, Coventry, Drummond Street (London), Edinburgh, Leicester, Loughborough, Manor Park (London), Small Heath and Ashton (Birmingham), Turnpike Lane (London), Luton, Newcastle, Oldham, Portsmouth, Southampton and Walsall.

~ END ~

Press Release Notes:

1. Following the collapse of First Solution a rescue package was considered by the Agents and Branches to save the credibility of the Bangladeshi community and pay the creditors on a voluntarily basis.

2. Funds had been secured from investors and negotiations had been finalised with the Insolvency Practitioner – Panos, Eliades, Franklin and Co. to purchase First Solution – the entire company including its assets and liabilities. However, on the 2 August the 2007, the Secretary of State for Business, Enterprise and Regulatory Reform was granted a Court order to wind up the company to protect public interest. The legal position of the company changed with the approval of the petition. The company now had to be purchased from the Official Receiver (“OR”) appointed by the Government’s Insolvency Service.

3. Discussions and negotiations with the OR commenced with the view to purchasing the company as originally intended by Coastearth Ltd. However, the process was very complex and time consuming. As a result, the legal advice was that an alternative solution should be considered.

4. The ‘alternative solution’ was to purchase the company name and identity; good will and associated assets, including the security deposits held by several Banks in Bangladesh for the purpose of trading and drawing arrangement. This would ensure that unnecessary liability is not being taken on board by Coastearth Ltd except to fulfil the commitment to pay the disadvantaged ‘remittance creditors’. This process would be less complex and quicker to implement.

5. The name ‘First Solution Money Transfer’ was transferred and the name changed on 03 October 2007 to enable Coastearth Ltd to conduct discussions with third party.

6. Although the rescue plan changed to a different ‘Corporate Recovery’ vehicle the principle and the commitment of Coastearth remain the same – to pay the creditors and commence trading.

7. As soon as the company rescue plan is implemented it is anticipated that remittance creditors would receive a high proportion of their money as soon as possible. It is anticipated that payments to creditors will be released in several phases to avoid any difficulties and complication and therefore the creditors will receive equivalent to £115,000 immediately after the company commences trading. The remaining balance would be paid thereafter from the capital investments and if required from trading profits.

8. It is hoped that £950,000 to £1.2m will be available to creditors. This will be made up of capital investments, voluntary commitment from the previous directors and sales of assets from assets by the Official Receiver.

9. Please be advised that the previous directors of First Solution Money Transfer Ltd, namely – Dr Mahmood, Mr Rumi and Mr Hadi are not part of Coastearth Ltd and will not remain involved with the new First Solution Money Transfer Ltd and the new setup.

10. The new owners will put in place the necessary infrastructure, systems and measures to maintain a strong position in the market and prevent any potential risk by being exposed to the currency exchange losses.

11. If you need any more information please contact us

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