PRESS RELEASE: Directors of First Solution Branches on RESCUE DEAL
Below is the press release from the Directors of First Solution Branches on their Rescue Deal for Dr Fazal “Fraud” Mahmood & Co’s First Solution Money Transfer Ltd.
PRESS RELEASE
The sudden closure of First Solution Money Transfer Ltd on 28th June 2007 has raised severe concerns and has had adverse reactions within all sections of the Bangladeshi community.
Since then, the Directors of First Solution Branches, who acted as the collection point for First Solution Money Transfer Ltd, out of their moral and social obligations, have been working silently but relentlessly for the last 8 weeks on a corporate recovery package to resolve this situation and reach a position whereby all creditors can be paid.
The hard work is now nearing the end of the lengthy legal process of attempting to secure the future of First Solution Money Transfer Ltd. Following many weeks of negotiations with the Official Receiver, The Secretary of State and the existing shareholders of the Company, namely Dr Mahmood, Mr Rumi and Mr Hadi, an agreement has been secured which is pending the Court’s approval of the proposed corporate recovery.
Prior to this, an agreement had already been reached with the previous insolvency practitioners – Panos, Eliades, Franklin & Co. and contracts were to be exchanged, however, the appointment of the Official Receiver on 2nd of August 2007 changed the legal position of the company and therefore the exchange could not be completed.
It is anticipated that a Court hearing date will be obtained on Thursday or Friday next week by our legal representatives which is encouraging as upon approval from the Court the parties can then attend to the business of processing customer’s claims and agreeing arrangements with them in this respect.
It is expected that the recovery will be announced immediately after the outcome of the hearing through a press conference stating the details of how and when the creditors will get their remittances processed again.
Some funds have already been raised from investors who have evaluated investment opportunity in the company. Further investment is being encouraged from potential investors and other Branch Directors and Agent who have not yet joined recovery to come forward considering the victims and of course the unique investment opportunity in a multi-million pound company.
All community leaders and businesses that have been making positive contributions in finding a suitable solution to this unfortunate situation are also being requested to support this initiative.
Branches who took this initiative are:
Aston (Birmingham), Small Heath (Birmingham), Bradford, Bristol, Burnley, Coventry, Edinburgh, Hyde, Leicester, Loughborough, Kings Cross (London), Drummond Street (London), Manor Park (London), Turnpike Lane (London), Luton, Newcastle, Oldham, Portsmouth, Southampton, St. Albans and Walsall and Others
Potential investor, Branch Directors and Agents are requested to contact 0844 884 8774 for further details.
August 28th, 2007 at 5:23 pm
I have heard on Bangla TV that Mahi Jalil has resigned from Channel S. Do you have any information on this? Thanks.
August 28th, 2007 at 6:02 pm
I am confused. if the company has gone in to receivership then why do the brancj directors have to negotiate/deal with the failed and some say fraudalent FS directors?
Surely, even if FS is bought out of reveivership by the branch directors FS directors are still liable for the amount. This deal smells. This probably means the FS directors will get away with this and will show two fingers to the community. They will claim victory and claim credit for it, whe they had notign to do with this.
I alos do not beleive this is a multimillion pound business as is being claimed. It may have multi-million pound turnover but that is not the same. We know the company remitted up to £87m but what was the profit?
Still if the people get their money back it will be good turnout, however the FS directors shoudl be pursued and no let off the hook. What they have done may be criminal and we should ensure appropriate action is taken by the authorities.
One question. If the authorities recover any of the monies, who gets this money? The new FS? the creditiors or the government or do FS directors get away with it and get the money?
Something is not right here.
August 28th, 2007 at 6:30 pm
AngryMan
I think poster Rescue Deal is best placed to answer your very valid and important questions. I await Rescue Deal’s response.
I assume if the Branch Directors manage to takeover First Solution they would take on both the assets as well as the debts, which is much greater. I assume they will pay the debts to the creditors from the assets plus their own money that they BRING in.
Regardless of whether this rescue deal takes place or not, I as a creditor will want to know why this fiasco happened and why Dr Fraud and Co ‘FAILED TO DELIVER’?
August 28th, 2007 at 6:37 pm
s ahmed
Not sure about Mahee resinging. I’ll try to find out.
August 29th, 2007 at 5:43 am
angry many thank you for raising these points,
1) why negotiate with the FS directors. within the time frame we are working in it will be impossible to establish the total debt on the company (namely trade debt not customer debt) so we had to strike a deal keeping the authorities party to this deal that any debt over the agreed amount will remain their responsibilty, and to ensure the undertaking of this they had to provide enough equity and securaties to cover the possibilty.
2)if we brought out from the receivers. If we had just purchased the assets from the official receiver then you are right the liabilty would remain their responsibilty. however looking at the overall bigger picture there is no merit in purchasing the assets as this company would cost next too nothing compared to what we are committing to, to start from scratch.
the merit is in not allowing the reputation of the whole community to go down in history for a negative reason, this saga has put enourmous pressure on bangladesh’s economic system, it has put pressure nealry on all large bangladeshi corporation where there is public investment such as the airlines and property developments.
thus the reason why we are taking on the liabilties aswell the assetts, we wish to restore this confidance back into our community, and hope this will not prevent bangladesh from prospering.
3) the profits of a company that handles multi millions of pounds can be found from companies house, any one with a head for numbers can work out that even at a nominal precentage there is a hugh amount to be earned.
4)what they have done may be criminal. This is purely for the CPS to decide, however i dont think the CPS takes that long to make this decision.
excellent question about who will get the procceeds of crime if there was any, if the company gets taken from the receivers then the goverment is the only body that will be entilteled to this money.
i am lead to beleive that the relevant authorities are satisfied that the loss incured due to fluctuations in the curanncy rate and fs not having the cash flow to purchase the currancy at the rates offered. Should any new evidance come to surface that can or will incriminate the directors of FS then this will open up a whole new story.
IT IS IMPERATIVE THAT WE FIND OUT WHAT EXACTLY HAPPEND TO THE MONEY. BUT WHO WILL FOOT THE BILL FOR A PRIVATE INVESTIGATION AS I THINK THE GOVERMENT ONE IS CONCLUDED. IS THE COMMUNITY PREPARED TO FORK OUT HUNDREDS OF THOUSANDS OF POUNDS FOR THIS SATISFACTION?
August 30th, 2007 at 6:11 am
i think theyve investedit in properties in uk and dubai.
so they and the families havent really lost out. they have got the money secured for themseleves and in the future you will see them buying massive property for them selves and posh cars.
i wonder if theyve still got those posh company cars or are they using bangers!!!
Im sure no one will ever trust those crooks again!
August 30th, 2007 at 3:57 pm
i can see that the branch directors have gone to a lot of effort to get this far, lets just hope it all pays off for ours and their sake.
if they was really suppose to get the company from the last liquidators and the goverment getting involved has slowed them down or stopped them then i will blame the likes of azmol and galloway for pushing the goverment to get involved. reading all these articles points to only one direction the way of getting my money back is if these branches do take over the company.
i will be gutted if nothing happens before ramadhan.
i still think that fazal mahmood and co should still fork out the 1.7million they lost of our monies. even if someone stepped in to save the moment.
August 30th, 2007 at 4:17 pm
@@@s ahmed: MAHEEE RSIGNING…
Simply not possible. He owns the CHS, how can he resign, his ego simply will not allow it.
If he has then it will probably be due to the fact that CHS license is up for renewal at OFCOM in November and as his name as been associated with FS, he stands a better chance of renewal with him “resigning” (WINK WINK) if you know what I mean.
If people complain to OFCOM about the Prestige Investment Fund, which allegedly is in breach of OFCOM rules, it may scupper the renewal.
August 30th, 2007 at 4:34 pm
What is the agreed amount? I thought you said it was £1.7m. And who is to pay the creditors?
Were the creditors or their representatives involved in this decesions? How can you negotiate with the FS directors without involvement of the reps of the creditors who are looking after the interests of the FS creditors? Is this a backdoor sellout of the people you proclaim to be the saviours off.
The second thing is how canyou deal with the descredited and vilified FS directors. You are basically giving them a “get out of jail card”
“the profits of a company that handles multi millions of pounds can be found from companies house, any one with a head for numbers can work out that even at a nominal precentage there is a hugh amount to be earned. ”
So the potential rich pickings from the carcas of FS is the real driving force behind these deals and “time framework” rather than the welfare of the creditors- victims. You seem to have more concern about the questionable airline businesses and community commerce.
“i am lead to beleive that the relevant authorities are satisfied that the loss incured due to fluctuations in the curanncy rate and fs not having the cash flow to purchase the currancy at the rates offered.”
How come you know this and not the creditors? How come the FS directors did not cite this as the reason for the failure rather than blaming you guys - the agents and sudden growth in business?
“the merit is in not allowing the reputation of the whole community to go down in history for a negative reason, this saga has put enourmous pressure on bangladesh’s economic system, it has put pressure nealry on all large bangladeshi corporation where there is public investment such as the airlines and property developments.
thus the reason why we are taking on the liabilties aswell the assetts, we wish to restore this confidance back into our community, and hope this will not prevent bangladesh from prospering.”
NOT PREVENT BANGLADESH FROM PROSPERING!
Phew!! Hang on, this is stretching it a bit even by your previous standards. You make it sounds like some neo-tragic melodrama like Roopban! Failure of FS is hardly going to dent the economy of BD.
Your post raises many more questions than it answers.
What has happened to Mr Ajmal Hussain and his MPs and the curiously named comittee of Mr Hoque?
You talk of timeframe.
August 31st, 2007 at 6:58 am
your right that my post raises more questions then it answered. That is the metohphorical reality of what we have been facing for the last 9 weeks.
what has happend to mr ajmal and the MP’s and all the other self pro-claimed leaders and oragnisations?
cos if everyone has the common goal we want these guys to see this to the bitter end.
the comment on time frame, i dont believe the creditors wish to wait until mid october when a creditors meeting is call to see how much of the debt will be claimed by the public, infact many of the small creditors will not find it financialy viable to attend such a meeting and their credit will get written off therefore we have not excluded any such remmiter. the debt that is being established is what is on the company remmittance computer system… our only qusetionalable other debt is the trade debt, ie bills and invoices. so the only official body that was to be consulted was the CIB whom carried out an investigatation to establish the figures and others issues.
oh mr roopban it is not a melodrama it is a fact that is putting pressure on the countries economic system as the official volume of remmitance from UK to bangladesh has dramaticly droped, it will again increase slowly but this does not mean the monies are not going into the country it is just the goverments in both countries can not account for it or benefit from it.
the knowledge we have and not the creditors?
to be honest we are finding extramly difficult to get any message across to the public. it is virtually impossible to write to 2000 people with any or every new bit of info we might get. secondly most of the mainstraem media do wish to get involved becasue it is not big enough for them and the bangladeshi media is just sitting on the fence, i question a number these as to why they did not print our press release. one mans very word were ” amar behktigotoh oushubita karaoneh” i ask what this may be he replied if i could tell you it would not be behktogotoh.
so how do we get these message across?
we are just silently but surely carrying on with our course. all the mediums will jump on the band wagon once the hand overs occures.
so angry man you seem to be very savvy about the ongoings with in the company and how it should be run. why dont you come forward and be part of this? do you have anything to lose?
August 31st, 2007 at 10:08 am
it seems like angry man has an issue with the rescue package….
do you guys know of any one else doing anything about this or has every one just cut their loses and gone home sad and sorrow?
September 1st, 2007 at 12:21 pm
RESCUE DEAL SAYS:
“so angry man you seem to be very savvy about the ongoings with in the company and how it should be run. why dont you come forward and be part of this? do you have anything to lose?”
What have I got to loose? A lot of money and my good name. I have not so far seen any concrete proposal of how this business is going to be run and by whom. What ha sben included here is a list of branch, but we still do not know who the personalities are behind the branches.
If you say, FS lost money due to currency fluctuations, then presumeably this risk will still exist if and when FS (2) startes trading, how will you innoculate yourselves agianst this. However, it is still not clear how in a cash business you can fall foul of currency fluctuations, unless they where holding the money and speculating on the money markets, i.e. gambling with other peoples money. The more credible and I heard this from an ex-employee is that allegedly they were “whitening” Falus money.
How are you involved with FS 2 and how do you think it will suceed second time around?
I await your explanations then perhaps we can have a detailed dicussion.
September 1st, 2007 at 2:05 pm
contact us and we can have a detailed discussion, if what you say about falu is true, then there is a whole new ball game.
do you or you’re source have any evidence to back up such claim. as I do not wish to waste time with hear say. please give us something to support the accusation.
September 1st, 2007 at 6:23 pm
Its not the sort of info people will trust anyone with. Besides what will do with it anyway.
September 7th, 2007 at 5:25 am
wow wow wow……..
not a singal peak from any one for a long time.
may be people just have to much money and are prepered to wave it good bye
September 10th, 2007 at 10:29 am
snide mr ajmol, made a comment on bangla tv about this rescue deal, it’s funny how e kept on banging on that fazal mahmood and co have taken the money and there is no way the agents can hold on to it, he kept banging on that somming should be done but yet soon as some thing comes to surface he dissis it by saying it’s getting done by stolen monies…
i certainly smell a rat here some where,
may be azmol had something to benefit from this collapse as i know he holds a MLR agreement with the banks of bangladesh and he has been trying to poach some off the branches.
the branches proberly declined and he wents to fazal mahmood with his new spin, and got a big fat wedge(whad of cash) from fazal to say that these branches have held back the monies.
either way he has made his bucks.
i think some one should ask him what the pay out was that came from our money.
September 10th, 2007 at 11:22 am
I agree with hopes’s latest coment.
We can’t just give in to these crooks. What has happened to you lot?! Come on.
AngryMan, have you lost your hatred in Dr Fraud. Are you going to let him get away with it.
And what’s happened to admin0 . What about your hard earned money - are you going to let it go?
WAKE UP TO REALITY AND GET BACK YOUR MONEY FROM THAT CROOK!
September 10th, 2007 at 6:38 pm
Glad to see that people are still interested in this scandal.
No, I havent given up on getting my hard earned money back, no way.
Its just been difficult getting information out of people the last few weeks.
This week should hopefully be more fruitfal, I hope!
September 11th, 2007 at 11:09 am
i for one will never forget about this scandal.