Goodyear to Gain Compensation from Jamaica Subsidiary Liquidation

Goodyear Jamaica Ltd’s liquidator, Deloitte Touche Tohmatsu in Jamaica, is to offer “interim distribution” compensation of $3.75 per share to existing shareholders “by the end of October or early November.” Goodyear Tire & Rubber Company is a leading shareholder and will reportedly receive over J$131 million (US$1.48 million) of the first payout. The liquidation process is expected to be completed by 2010.

At J$3.75 per share, on Goodyear Jamaica’s 59.4 million issued shares the first payout would amount to J$222.75 million, Jamaica Gleaner reported. The company’s stock market value at delisting was J$193.644 million, based on a share price of J$3.26.

Goodyear announced it would exit Jamaica for good in 2008 opting for voluntary liquidation two years after a fire consumed its inventory. The company began business as a tyre manufacturer 1965, operating a plant in Morant Bay, St Thomas, since 1967. However the company ceased production in 1995.

According to local news reports, Goodyear has already paid J$16.4 million on staff redundancy and owed J$142 million to group companies and another J$76 million in trade payables in its 2008 report.