Tweet
Former hotelier says he was treated unfairly by FINSAC
2011-03-08 12:29:42 | (3 Comments)
Dionne Rose, Gleaner Writer
Keith Foote, operator of the former Little Pub Hotel and Restaurant in Ocho Rios, St. Ann this morning told the FINSAC commission of enquiry that he was unfairly treated by FINSAC when he appeal for debt forgiveness.
He said he was scoffed at after he repaid 75 per cent of his [COLOR=blue !important][COLOR=blue !important]debt[/COLOR][/COLOR].
Foote made the disclosure this morning while being led by Judith Clarke, attorney-at-law who was marshalling evidence on behalf of the Commission.
He said he borrowed $5 million from the National Commercial [COLOR=blue !important][COLOR=blue !important]Bank[/COLOR][/COLOR] to repair his property, which was badly damaged in Hurricane Gilbert in 1988.
Foote said he serviced the loan for several years but ran into trouble when the [COLOR=blue !important][COLOR=blue !important]interest [COLOR=blue !important]rates[/COLOR][/COLOR][/COLOR] escalated between 50 and 90 per cent.
According to him, when FINSAC took over the loan he was told he owed $33 million after he had already paid down $15 million on the loan.
He said he then approached FINSAC for a debt reprieve but was flatly turned down and was told he had to pay back all the [COLOR=blue !important][COLOR=blue !important]money[/COLOR][/COLOR].
Foote said he eventually secured a loan from another bank and paid off $26 million of the debt and approached FINSAC again for debt forgiveness but was again rejected.
He says he was told by FINSAC that he had to give up his two bedroom pent house apartment, in which he lived for 10 years in exchange for the remaining debt.
Foote claimed the beach front apartment, which was a prime real estate property was valued between seven and nine million dollars at the time but was sold for $3.3 million.
dionne.rose@gleanerjm.com
2011-03-08 12:29:42 | (3 Comments)
Dionne Rose, Gleaner Writer
Keith Foote, operator of the former Little Pub Hotel and Restaurant in Ocho Rios, St. Ann this morning told the FINSAC commission of enquiry that he was unfairly treated by FINSAC when he appeal for debt forgiveness.
He said he was scoffed at after he repaid 75 per cent of his [COLOR=blue !important][COLOR=blue !important]debt[/COLOR][/COLOR].
Foote made the disclosure this morning while being led by Judith Clarke, attorney-at-law who was marshalling evidence on behalf of the Commission.
He said he borrowed $5 million from the National Commercial [COLOR=blue !important][COLOR=blue !important]Bank[/COLOR][/COLOR] to repair his property, which was badly damaged in Hurricane Gilbert in 1988.
Foote said he serviced the loan for several years but ran into trouble when the [COLOR=blue !important][COLOR=blue !important]interest [COLOR=blue !important]rates[/COLOR][/COLOR][/COLOR] escalated between 50 and 90 per cent.
According to him, when FINSAC took over the loan he was told he owed $33 million after he had already paid down $15 million on the loan.
He said he then approached FINSAC for a debt reprieve but was flatly turned down and was told he had to pay back all the [COLOR=blue !important][COLOR=blue !important]money[/COLOR][/COLOR].
Foote said he eventually secured a loan from another bank and paid off $26 million of the debt and approached FINSAC again for debt forgiveness but was again rejected.
He says he was told by FINSAC that he had to give up his two bedroom pent house apartment, in which he lived for 10 years in exchange for the remaining debt.
Foote claimed the beach front apartment, which was a prime real estate property was valued between seven and nine million dollars at the time but was sold for $3.3 million.
dionne.rose@gleanerjm.com