CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE WELLINGTON TELNO 26
OF 211015Z NOVEMBER 91
INFO IMMEDIATE FCO
CONFIDENTIAL
Hink
102/3
011525
MDHIAN 2928
все-ни
WELLINGTON: PLEASE PASS TO GOVERNOR VISITING.
THIS IS TO UPDATE YOU ON THE LATEST DEVELOPMENTS REGARDING THE SALE OF BCC HK'S BANKING BUSINESS.
IF EVERYTHING GOES ACCORDING TO PLAN, THE PROVISIONAL LIQUIDATOR WILL APPLY TO A JUDGE IN CHAMBERS EITHER LATE THIS AFTERNOON OR TOMORROW MORNING FOR APPROVAL TO ENTER INTO FURTHER HEADS OF AGREEMENT FOR THE TRANSFER OF THE ASSETS AND LIABILITIES OF BCC HK TO A NEW BANK TO BE FORMED BY THE HONG KONG CHINESE BANK.
PLEASE FIND ACCOMPANYING FAX THE PROVISIONAL LIQUIDATOR'S DRAFT FOURTH REPORT (WHICH SETS OUT THE MAIN TERMS OF THE FURTHER HEADS OF AGREEMENT AND THE WAY FORWARD) TO THE COURT AND A DRAFT
PRESS RELEASE WHICH HE INTENDS TO ISSUE AFTER SEEING THE JUDGE IN CHAMBERS. IN BRIEF, A SCHEME DOCUMENT CONTAINING A DETAILED DESCRIPTION OF THE ARRANGEMENT WILL BE PUT TO CREDITORS FOR APPROVAL. THE PROPOSED SCHEME OF ARRANGEMENT WILL BE CONDITIONAL ON, AMONGST OTHER THINGS, THE APPROVAL OF THE CREDITORS, THE GRANT OF A BANKING LICENCE TO THE NEW BANKING COMPANY BY THE EXECUTIVE COUNCIL AND THE ENACTMENT OF LEGISLATION TO TRANSFER THE AGREED ASSETS AND LIABILITIES AND TAX LOSSES TO THE NEW BANK.
THE ACTING FS INTENDS TO ISSUE A PRESS RELEASE (SEE MIFT) WELCOMING THE DEVELOPMENT AND POINTING OUT THAT ALTHOUGH THIS IS IN ESSENCE A MATTER FOR THE DEPOSITORS, THE ADMINISTRATION WILL DO ITS BEST TO ASSIST. THE ACTING FS WILL BRIEF OMELCO TOMORROW AFTERNOON AND THE PROVISIONAL LIQUIDATOR WILL MEET WITH REPRESENTATIVES OF THE DEPOSITORS AT ABOUT THE SAME TIME.
WE WILL ADVISE YOU OF THE OUTCOME OF TOMORROW'S HEARING.
(COMMS NOTE: FAXES REFERRED TO ARE GRADED CONFIDENTIAL CANNOT FAX DIRECT TO WELLINGTON WILL HOLD UNTIL DOWNGRADING CAN BE DETERMINED. AUTHORITY: ACTING FS).
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