Shareholders and members of the reconstituted board of CDH are giving up on their Assets Management Subsidiary.
This is due to the complex structure of the Assets Management Company in relation to the two sanctioned affiliates: CDH financial holdings and the Discount House.
The decision comes within the two-week grace period the Securities and Exchange Commission gave the company to submit its re-capitalization plan.
Sources close to the CDH board say it?s virtually impossible to meet the SEC deadline, considering the fate of the Financial Holdings Company and the court case involving the Discount House and the Bank of Ghana.
The CDH board has therefore decided to forgo CDH Assets Management while working towards restoring the license of CDH Securities Ltd.
The CDH group has fallen on hard times lately.
The central bank has revoked the license of CDH Discount house and the SEC has given shareholders two weeks to submit a new plan on CDH Securities and Assets Management.
However, shareholders may be able to salvage CDH Securities.
