CONFIDENTIAL
Aide-memoire
It will be recalled that on 18th July, Jalil Majilbrahim of Bumiputra Malaysia Finance Limited was allegedly murdered. The Police have naturally since that date been energetically pursuing their enquiry into the alleged murder and related matters.
As a result of this investigation, documents are in their possession which have a bearing on the reconstruction plans put to me by the advisers of Carrian Holdings Ltd. and Carrian Investments Ltd. Documents relevant to their inquiry have been prescribed by the Inspectors appointed by the Securities Commission into the affairs of the Carrian Group. The relevant points have been considered by the Securities Commission and I now wish to put them to you as they require your appraisal and comment before we, and other authorities, give decisions on the various proposals put to us.
The main point is the possible understatement of the debt owing by the Carrian Group.
According to documents from BMFL, the debt owed to them by the Carrian Group at April, 1983, was HK$4,181 million with 90 per cent of the debt expressed in US dollars. If this debt is applied to Carrian Holdings Ltd., as the advisers have so far suggested that it should be, the total liabilities of Carrian Holdings Ltd. are grossly understated.
BMFL documentation further states that a debt of US$110 million exclusive of accrued interest is owed by Carrian Investments Ltd. and that BMFL has allowed the Carrian Group to show only minor indebtedness to BMFL by CIL. document also states that despite repeated requests by Price Waterhouse, BMFL has not so far indicated the full amount of CIL's debt. The policy followed by BMFL is stated to be in line with the discussions they have "been pursuing with the Carrian Group to improve its own security position outside the rescue scheme at present being formulated by the Financial Advisers of the Carrian Group".
Finally, also on 18th July, Mr. Tan and Mr. Bentley Ho of Carrian and of China Underwriters discussed and arranged with Mr. Osman and Mr. Chin of BMFL a loan of a further US$4 million. I understand that this loan was made to a Carrian Company called Fitarget and was for on lending to Fleuret, the company being used for purchase of control of China Underwriters. You will recall that in this regard, Mr. Tan recently wrote to me with an assurance that the purchaser had no relationship with Carrian Holdings Ltd. and Mr. Pyott said that his company had no connection with the creditors of Carrian who held shames.
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