Carragreen debt estimate $1M

Press, 24 May 1988, Page 23

Carragreen debt estimate $1M

About $1 million is needed to pay everybody owed by Carragreen Currency, Ltd (in liquidation), a creditors’ meeting was told in Christchurch yesterday.

Mr Simon (Sarwar) Rasool, the managing director, failed to show up at the meeting, which waited a short time for him. The official assignee, Mr Lynn Saunders, reported that liabilities were $796,500 and assets $91,000 — a deficiency of $705,000. But he said this did not allow for repayment of advances to Carragreen Currency (Pakistan), Ltd, of $1,897,990, and to Carragreen Currency (Australia), Ltd of $18,579. Mr Saunders had hoped to examine Mr Rasool at the meeting on these debts.

He would like to question Mr Rasool about proceeds from the sale of a Mercedes 500 S company car for about $llO,OOO, well under market value. He also wants to examine him on the recovery of advances of $122,840 to staff “in the absence of possible claims for arrears of any remuneration outstanding.”

Carragreen Currency was not affiliated to the New Zealand Futures Exchange. It solicited business by telephone calls throughout the country offering leveraged investments in currencies. In November it moved its office from Auckland to Christchurch.

The Australian arm of Carragreen Currency ended its currency trading after the New South Wales Supreme Court ruled its leveraged currency contracts were futures contracts. In Australia, futures trading not related to a futures exchange is banned. Sixty-one clients are owed a total of $168,000, and unsecured trade creditors are owed $280,000. The Bank of New Zealand is owed $B5OO, and $300,000 is owed in taxes. Liquidator’s fees and expenses to date are $40,000. The assets include office equipment and furniture that' cost between $70,000 and $BO,OOO but is expected to realise $30,000. Three debtors owe Carragreen a total of $lB,OOO, and motorvehicles are listed at $40,000. About $2 million from Carragreen Currency went to Australia, Mr Saunders told the creditors. The Australian company had charged the New Zealand company this for organising hedges. The liquidator tried to block the recent sale of an Australian hotel by Presga Pty, Ltd, of which Simon Rasool, and his brother, Akbar (director of Carragreen Australia) are directors. A caveat

placed on the title by the Official Assignee was lifted after legal action was threatened.

Asked by a creditor whether the fraud squad was interested in the company, Mr Saunders said: “The police have interviewed Mr Rasool. That is as far as I would like to go.” Mr Saunders said Simon Rasool had Australian nationality. His wife, Isobel Rasool, was a New Zealander. Safdar (Sam) Rasool, a brother, who runs the Pakistan company and describes himself as group president, is a Pakistan national, as is a third brother, Akbar.

Caragreen had four Mercedes cars, but the cars still owned are more modest (a Suzuki Alto has been sold for $7BOO and a Ford Laser for $7500). In the weeks before the winding-up of the company, Mr Robert Baran, formerly Carragreen’s vice-president of international operations, seized two of the Mercedes in lieu of money owed. However, with the help of the police they were recovered and the person has relinquished ' claim to them. Another Mercedes, a 500 SE, arrived in New Zealand about Christmas. It was bought in West Germany, and paid for

from New Zealand by Carragreen Currency at a cost of $102,000. The money was by transfer to Pakistan and then to West Germany. This car was sold in New Zealand for about $llO,OOO and the money paid into the account of Simon Rasool, who now claimed this was part of the money owed to Carragreen Currency by the Pakistan company, Mr Saunders said. He said he had spoken to Simon Rasool in Sydney by telephone recently. A call to Sydney on Friday was answered by a person who said Simon Rasool had gone to Singapore to meet his brother, Sam (Safdar), but that he (Simon Rasool) would be in Christchurch for the creditors’ meeting.

Mr Saunders said he would now go to Sydney to check the relationship between Carragreen and Presga and try to interview Simon Rasool. He might also go to Pakistan, where he can bring a civil claim against the Rasool brothers’ Pakistan company.

Carragreen Currency was wound up on April 27 on the petition of the company’s receiver.

The creditors’ meeting was adjourned sine die.