Stephenson under cross-examination in action against Receiver/Manager
HEAD of Cara Investments Limited, Paul Stephenson agreed, in Court last Friday, that the Receiver/Manager of Hotel Tower Ltd, Christopher Ram is not bound to accept any of the proposals submitted for its sale.

The witness said Ram reserves the right to reject proposals in whole or part and to discuss different or additional aspects with any investor, as well as to terminate the process described in the preliminary information package at any time before definitive agreements are executed.

Stephenson was giving evidence, under cross-examination by Senior Counsel Edward Luckhoo, before Acting Chief Justice Ian Chang at the continuation of an action by Cara Investments Limited against Ram, personally, and in his capacity as Receiver/Manager Hotel Tower Ltd and Bank of Nova Scotia.
Luckhoo is representing Ram.

Stephenson said he understood the difference between an expression of interest, conditional offer and firm offer.

Shown a letter to Ram, dated December 23, 1999, the witness admitted it represented an expression of interest on behalf of Cara Investments.

He also recognised that, in the attached documents, his offer was conditional on several factors, including a due diligence process to be conducted by Trinidad personnel, a verification process and receipt of additional information, which he had requested.

Stephenson said Cara Investments would only be prepared to be considered as a designated investor after completion of the due diligence.

He also acknowledged that the time frame he had submitted to Ram did not contemplate expiration until February 15, 2000 although he filed the injunction against the latter in January 2000 before the period had expired.

Stephenson denied knowledge that there were several other bids for Hotel Tower assets, apart from that of  Cara Investments, which would have more benefits to the Tower  shareholders.

He said he knew that the assets of the hotel were not sold but that the shareholders took a decision to sell their shares.

Further hearing has been adjourned to October 20 when Stephenson will be further cross-examined.