The co-Interim Receiver/ Managers submitted the Second Interim Report to the Supreme Court on May 13. This report, which was mandated by the Court, and is over 200 pages in length, addressed the specific findings of the Receivership Team.

THE OPERATING ENVIRONMENT

The Receivership Team has found that, overall, Cash Plus was not operating as a growing, financially viable and diversified conglomerate. The Receivership Team was unable to find any documentation to support Cash Plus' management philosophy, methodology or financial plans.

Overall, the Cash Plus operating environment consisted of:

Only three viable entities out of

more than 200 identified by the

Receivership Team to date (total

still to be determined)

Poorly maintained

accounting records

Inadequate internal controls

Inadequate financial planning

Payments made through

third parties

Unsustainable business

model including

minimal revenue-generating

activities

Severe asset-liability mismatch

In several instances, Cash Plus entered into transactions to acquire companies, real estate and other tangible assets. The majority of these transactions were never completed and often stalled after preliminary discussions and tendering of initial deposits. In addition, several companies, land and other assets were bought above their reasonable market price, presumably because of a lack of proper due diligence and independent valuation.

CASH PLUS' SUMMARY OF ASSETS AND LIABILITIES AS AT MARCH 31 (UNAUDITED AND SUBJECT TO VERIFICATION)

Based on the information gathered thus far, the table on page B8 reflects the reconstructed Summary of Assets and Liabilities of Cash Plus and affiliates as of March 31. Assets, which amount to $4 billion, consist mainly of land and buildings and refunds of deposits on failed transactions.

These assets are not easily converted and the final amounts realised may be different from what is shown, as they are subject to prevailing market conditions and the Receivership Team's ability to negotiate with the vendors of these failed transactions. Cash and other liquid assets amounted to less than $3 million as at March 31.

Liabilities consist primarily of amounts due to lenders. The findings to date have revealed major discrepancies in the accounting for lenders' transactions.

The Receivership Team does not express an opinion on the financial information presented in the summary. These amounts are subject to verification and wide fluctuations given the existing state of the companies' accounts. Further, the Receivership Team has not had access to all the records and persons we would have liked, given the relatively short period of time to investigate the numerous companies in the group and report to the Court.

CASH PLUS INTAKES 2004-2007

Cash Plus Limited (CPL), one of the companies in the group,was incorporated on May 5, 2003, according to information at the Registrar of Companies. During 2004-2007, CPL received lenders'

funds totalling approximately J$22 billion.

CPL acted as the financing arm for the Cash Plus entities, by "borrowing" funds from the public (lenders) and lending these funds to other members of the group, mainly Cash Plus Group Limited (CPG) and Cash Plus Development Limited (CPD) for the purpose of financing those entities' investment activities, such as real estate and other acquisitions. Based on the Receivership Team's analysis to date, which is preliminary and subject to change, CPL used approximately 70 per cent of its intake, on an overall basis, to repay lenders.

Repayments

The number of lenders is currently estimated to be between 35,000 and 45,000.

The monies used for repayment appear mainly to have come directly from the funds received from lenders, as Cash Plus did not appear to have had sufficient income-generating activities to support the interest payments on these deposits and to pay staff and other operating costs.

NEXT STEP

Bearing in mind that there is no liquidity in the group, the repayment to lenders and other creditors can only commence after Cash Plus has realised a substantial portion of the real estate and deposits on failed transactions as shown in the above Summary of Assets and Liabilities. During the next few weeks, the Court will decide on the next appropriate course of action.

Cash Plus investors protesting outside the Half-Way Tree Courthouse. They were in support of Cash Plus boss, Carlos Hill, who is facing the court on fraud charges. - Norman Grindley/Deputy Chief Photographer

Assets Total Assets (J$B) Total Liabilities (J$B)

Refund of deposits on

failed transactions 1.17

Land and buildings 1.49

Other non-liquid assets 1.38

Liabilities

Loans Received 20.62

Other Liabilities 4.28

4.04 24.90