Jamaica's largest bank is facing its biggest test. Michael Lee-Chin has until December 31st to come up with $100 million US or risk losing control of NCB Financial Group. Dr. Matthew Preston and Dr. Thaon Simms break down the bondholder meetings, the pledged shares worth $246 million, and what this crisis means for thousands of NCB shareholders watching their investments drop from $45 to $37.We explore the debt pressure from Portland Barbados Limited and AIC Barbados, the $300 million US owed to bondholders, and...
Jamaica's largest bank is facing its biggest test. Michael Lee-Chin has until December 31st to come up with $100 million US or risk losing control of NCB Financial Group. Dr. Matthew Preston and Dr. Thaon Simms break down the bondholder meetings, the pledged shares worth $246 million, and what this crisis means for thousands of NCB shareholders watching their investments drop from $45 to $37.
We explore the debt pressure from Portland Barbados Limited and AIC Barbados, the $300 million US owed to bondholders, and whether Lee-Chin can pull off the magic trick of finding the money. From pension funds at risk to the possibility of fire sales that could tank the stock even further, this is the most critical moment in NCB's recent history.
Whether you own NCB shares or you're watching from the sidelines, understanding this crisis could reshape your view of Jamaica's financial sector forever.
Chapters:
00:00 - Introduction: The $100 Million Ultimatum
00:38 - Background: NCB's Fall From $200 to $37
02:18 - Understanding the Debt Structure
05:52 - Michael Lee-Chin's Affiliated Companies Explained
10:09 - The Missed Payments and Mounting Pressure
13:15 - Portland's $23 Million Default Trigger
16:21 - Selling NCB Towers: Finding Money Anywhere
19:03 - The Human Cost: Bondholders Needing Medical Funds
22:00 - December 31st Deadline Details and 45-Day Grace Period
25:27 - Can Lee-Chin Really Find $100 Million?
29:24 - The 75% Supermajority Vote Requirement
32:12 - What Happens If NCB Shares Get Seized?
34:36 - The Fire Sale Scenario: Who Would Buy NCB?
38:30 - Valuation Analysis: What Is NCB Really Worth?
42:25 - Potential Outcomes: Shares Instead of Cash?
44:01 - The Ripple Effect on Current Shareholders
47:09 - Trading Strategy: Waiting for $30 or Staying Away?
52:39 - Comparing to the COVID Crisis and Tourism Loans
56:04 - Hurricane Melissa's Impact on NCB and Guardian
1:02:54 - Final Thoughts: Preston's $10 vs Thaon's $20 Price Target
1:06:04 - Closing: What This Means for Your Portfolio
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