:

Unsympathetic

climate in any Court in which

in which other

creditors of CIL litigate with BMFL-

12.

On the other hand, the proposals in this paper,

if implemented, will obviate all of the above problems.

It will, however, only be viable if the values of the US

"

assets are far

confident

such sale.

beyond US$76 million and that BMFL is

that the present creditors will not object. to

Implementation

13.

If the proposals are acceptable,

implemented

they should be

as quickly as possible. A draft Sale and

Purchase Agreement produced by CIL's lawyers is attached.

It is being reviewed by the Bank's Hong Kong lawyers whose

preliminary comment is that the scheme of the proposed

legally acceptable although the US taxation

aspects (in the event of further sale) would have

sale)

sale i

to be

carefully considered,

6

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