Press Statement from the Branch Directors of First Solution Money Transfer Ltd
I came across this Press Statement from the Branch Directors of First Solution Money Transfer on a website called E-Bangladesh.
It makes quite a interesting read and it claims that the Victims of Dr Fraud & Co’s First Solution Money Transfer Ltd stand to get £955,000.
Have a read and draw your own conclusion, you will need rose tinted glasses!!! The actual content can be found at the following link PRESS STATEMENT.
PRESS STATEMENT: New Owners of First Solution Money Transfer Ltd (Branch Directors)
It gives us a great pleasure to make this statement that after 4 months of tireless effort by a good number of the company’s agents and the former directors of First Solution Money Transfer Ltd. with the support from the Official Receiver’s office in London, a deal has been struck to ensure that the creditors of the company receives as much of their hard earned cash as possible which they have lost due to the unfortunate collapse of First Solution in June 2007.
Although the former directors and shareholders, by virtue of their limited liabilities, do not have any legal obligation to pay the creditors of the company, however, they strongly feel that consistent with their moral, social, religious beliefs and obligations, they will pay up to £500,000 towards the creditors of the company over a period of time, on voluntary basis.
Accordingly, the former directors have made sure that the company’s agents are successful in taking over those assets and goodwill including the brand name to restart trading as First Solution Money Transfer Ltd. and satisfy the creditors.
We want to take this opportunity to thank the vast majority of creditors who have been waiting with patience and extended their sympathy towards us and our families. We want to express our sincere apologies to all the creditors for the inconveniences caused. We also want to re-assure everyone that there have been absolutely no findings of any wrongdoings by the former directors. However, the closure of the company was due to the negative media campaign and false statement made on a Sky TV channel, Bangla TV, which made it impossible to resolve the problems which the company was facing and hence continue trading.
It is also important to inform you that the vicious, inaccurate and prolonged media campaign against the former directors did not help us to act as fast as we had wanted to, in order to help the victims. We are urging those individuals who are using this tragic incident to capitalize their personal interest and gaining political benefits out of this, to stop this immediately.
We wish to thank and congratulate those agents who have been working day and night to put together a rescue deal to help the creditors and we will be there to help them in every possible way, should they need us.
Finally, we extend our sincere appreciation to the Official Receiver acting in this matter for putting together a sensible and practical deal to help those creditors who have been affected by this unfortunate incident. We, the former directors, will be working very closely with them to help recover all other funds owed to the company.
How the customers of First Solution Money Transfer Ltd. expect to get their money back?
1. Voluntary contribution from the former directors of the company, contractually bound with the official receiver, £300,000.
2. Further voluntary contribution from the former directors, £200,000.
3. Proceeds from the selling of company’s name to the new owners, former agents, £30,000.
4. Company’s bonds and deposits held at Bangladeshi banks, £60,000.
5. To be realized from company’s debtors, £250,000.
6. New owners to make an initial contribution towards the creditors, £115,000.
Approximate total funds to be realized to pay the creditors, £955,000.
How and from where the creditors will get the remaining shortfall?
Since the former directors and the new owners of First Solution maintaining that out of their moral, social and religious obligations they wish to see all the creditors get their money back, and as such they have been working tirelessly for the last 3-4 months to find a way out, and if need be are expressing that they are ready to dispose off their personal assets to meet this objective. Hence, after the above amounts are paid out, whatever the shortfall is, it is the sincere intention of the new owners of First Solution to see all the creditors gets their money back, and in this regard, the former directors wish to reassure of their full cooperation.
November 21st, 2007 at 4:39 pm
You’ve emphasised of no wrongdoing by First solution, in your press release. You have said that the collapse was due to a propaganda on a TV channel. I wonder if that is the case, where is our money gone? We paid you the money just to send it back home. You have taken the money from us and (arguably) sent it to Bangladesh. You have not done any business with the money!! So, if the money has not gone to Bangladesh, it must be lying with you. Why do you (ex-banch directors) and the ex-first solution directors need to do voluntary contributions on the basis of your moral, social and religious duty to pay our money? We want our own money, not your sympathetic contributions. And you need to clarify how you are giving the money back to the creditors.
November 22nd, 2007 at 4:55 am
I think what people fail to realise is that the money transfer business does not survive on commission alone - as has been pushed out by the media. It is a speculative currency business. When rates are favourable, companies “purchase” advanced currency in their target market which they then sell to the public and hope to capitalise on exchange rate fluctuations. However, it can all go wrong if currency rates nosedive and companies keep holding on in the hope that they will rise - just like if you were dealing in shares. In these situations, more money is required to be put in, in order to give people the rates that were advertised at the time. This additional amount must come from somewhere to make up the shortfall in I bet it comes from other customers funds and this is the model used by most of the money transfer companies. This can work if currency rates climb up again but a prolonged situation results in one like FS.
I am not defending FS and I have not been affected by this, but I think people need to understand that the money transfer business is not run on commission alone. The evidence of this is with the instant money transfer services that are now popping up. You have to pay a higher commission for this service because the companies do not get to hold on to your money and therefore do not profit from it through currency speculation and rely more on the commission for their profits.
November 24th, 2007 at 6:36 am
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****THIS IS NOT A PRESS RELEASE BY THE BRANCH DIRECTORS****
**** IF THIS IS CALIMED TO BE SO THEN IT IS A PASS OFF ****
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November 24th, 2007 at 8:15 am
The ‘Press Statement from the Branch Directors of First Solution Money Transfer Ltd’ that has been posted on your website is not from the new owners. This is from the previous directors. Please do not confuse the message.
Our statement can be downloaded from the link below.
http://www.pearlware.com/as/document-show.php?doc=80
November 24th, 2007 at 8:23 am
~ PRESS RELEASE ~
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
November 24th, 2007 at 12:37 pm
I apologies to the Branch Directors for creating confusion but anybody who reads the statement on E-BANGLADESH will automatically assume that it was from you and not Dr Fraud & Co.
Such was the style of the language that was used in that statement, which most people who read it would assume was from you. I wonder if that was intentionally done, I certainly think it is.
SO WHY HAVE YOU NOT ASKED E-BANGLADESH TO CORRECT THAT AND MAKE THE IDENTITY OF THE AUTHOR MORE CLEAR RATHER???
However, some of the questions that have been raised as a result of the Press Statement still applies to you.
CAN YOU ANSWER THEM AS ACCURATELY AND CONSICELY GIVING DEFINATE TIMESCALES?
December 7th, 2007 at 8:05 pm
No doubt Dr Fraud Mahmud is trully a stinking example of a Bangali. All this talk abour moral, social, religious obligation is rubbish, and I’ll tell you why?
Dr Fraud has been spending the last few weeks completely refurbishing his home in South Woodford. He has had a whole new roof/loft conversion and transformed this into his new private luxury office. He has installed a new bathroom complete with Jacuzzi. he has ripped out all the lansdscaping in his front garden and completely paved it, and he has redecorated his entire house, complete with expensive spot-lights. Also, he has two cars now in addition to his wifes car. His Silver Merc which he has taken his private number plate off from, and he also has a banged up Laguna. He uses he Merc to impress people, and uses his laguna to try and get sympathy! This guy has no remorse whatsoever. Infat, he has told neighbours proudly that he has spend £100,000 on these refurbishment and building works. Surely he shoudl have given this money to the creditors that lost their hard earned cash?
December 23rd, 2007 at 1:02 am
Greatest review about Press Statement from the Branch Directors of First Solution Money Transfer Ltd. I enjoy your articles.