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WEDNESDAY, FEBRUARY 19, 1992
"I AM OBVIOUSLY DISAPPOINTED THAT THE
TAKEOVER NEGOTIATIONS HAVE FAILED, BUT I HAVE NO DOUBT THAT THE BEST INTERESTS OF DEPOSITORS AND OTHER CREDITORS NOW LIES IN LIQUIDATION. I ANTICIPATE THAT THE LIQUIDATOR SHOULD BE IN A POSITION TO PAY A SUBSTANTIAL DIVIDEND WITHIN SIX MONTHS, HOPEFULLY SOONER.'
NOTE TO EDITORS:
FOLLOWING IS A FULLER STATEMENT DESCRIBING THE COURSE OF THE NEGOTIATIONS, THE SCALE OF THE NEW CLAIMS AND REASONS FOR ENDING THE TAKEOVER NEGOTIATIONS:
AT A MEETING WITH REPRESENTATIVES OF THE DEPOSITORS OF BANK OF CREDIT AND COMMERCE HONG KONG ("BCCHK"} TODAY (FEBRUARY 19) THE PROVISIONAL LIQUIDATOR, MR NOEL GLEESON, ANNOUNCED THAT THE TAKEOVER NEGOTIATIONS WITH HONG KONG CHINESE BANK ("HKCB") HAD ENDED BY MUTUAL AGREEMENT OWING TO THE EMERGENCE OF LARGE UNRECORDED CLAIMS, PRINCIPALLY FROM OTHER BCCI LIQUIDATORS.
LIQUIDATOR,
HE RECALLED THAT HE HAD BEEN APPOINTED PROVISIONAL AND MR MARVIN K.T. CHEUNG AND MR NICHOLAS P. ETCHES OF KPMG PEAT MARWICK SPECIAL MANAGERS, BY THE HIGH COURT ON JULY 17, 1991 ON
ON A PETITION BY THE GOVERNMENT PRESENTED UNDER THE PROVISIONS OF THE BANKING ORDINANCE TO WIND UP THE COMPANY IN THE PUBLIC INTEREST FOLLOWING THE COLLAPSE WORLDWIDE OF THE BANK'S PARENT COMPANY, BCCI HOLDINGS (LUXEMBOURG} S.A. {"BCCI") FOLLOWING ALLEGATIONS OF WIDESPREAD FRAUD AND OTHER CRIMINALITY AGAINST BCCI.
MR GLEESON EXPLAINED THAT HIS FUNCTION AS PROVISIONAL LIQUIDATOR AND THAT OF THE SPECIAL MANAGERS WAS ΤΟ SECURE AND SAFEGUARD THE ASSETS OF THE COMPANY FOR THE BENEFIT OF ALL THE CREDITORS.
A GREAT DEAL OF WORK HAD BEEN DONE AND IN EXCESS OF $5 BILLION HAD BEEN RECOVERED AND PLACED WITH A MAJOR LOCAL BANK.
DIRECTION, AND
A DIVIDEND OF
IN ACCORDANCE WITH THE FINANCIAL SECRETARY'S WITH THE BENEFIT OF AN INDEMNITY FROM THE GOVERNMENT, 25 PER CENT (SUBJECT TO AN UPPER LIMIT OF $500,000) WAS PAID ΤΟ CREDITORS, INCLUDING DEPOSITORS. THE PAYMENT OF THIS INTERIM RELIEF COMMENCED IN LATE JULY 1991.
A CASH AMOUNT IN EXCESS OF $4 BILLION REMAINS ON DEPOSIT LOCALLY AND IS EARNING INTEREST AT PREVAILING RATES.
THE STATEMENT OF AFFAIRS FILED IN THE COURT BY THE DIRECTORS OF BCCHK IN DECEMBER 1991 INDICATED SHAREHOLDERS' FUNDS OF MORE THAN $100 MILLION. HOWEVER, THIS ONLY MADE PROVISION OF APPROXIMATELY
$1 BILLION FOR BAD OR DOUBTFUL LOANS AND ASSUMED 100 PER CENT RECOVERY ON THE REMAINDER OF THE LOAN PORTFOLIO.
г
/THE STATEMENT