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MONDAY, AUGUST 10, 1992
FS APPROVES INTEREST CHARGES WAIVING IN BCCHK
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THE OFFICIAL RECEIVER AND LIQUIDATOR OF THE BANK OF CREDIT AND COMMERCE HONG KONG LIMITED (IN LIQUIDATION) ("BCCHK"} MR ROBIN HEARDER TODAY (MONDAY) ANNOUNCED THAT THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, HAD APPROVED THE WAIVING OF THE INTEREST CHARGES IN BCCHK, ESTIMATED AT HK$71 MILLION FOR THE FIRST YEAR OF THE LIQUIDATION.
TO
THE FINANCIAL SECRETARY HAD UNDER DELEGATED POWERS PURSUANT SECTION 96 OF THE INTERPRETATION AND GENERAL CLAUSES ORDINANCE (CAP. 1), APPROVED THE WAIVER OF THE 1.5% P.A. INTEREST CHARGEABLE UNDER SECTION 295 OF THE COMPANIES ORDINANCE OF FUNDS INVESTED IN THE COMPANIES LIQUIDATION ACCOUNT IN RESPECT OF BCCHK.
THE FINANCIAL SECRETARY HAS GIVEN APPROVAL FOR THE OFFICIAL RECEIVER AND LIQUIDATOR MAKING AN APPLICATION TO THE HIGH COURT OF HONG KONG TO WAIVE THE AD VALOREM FEES WHICH WOULD OTHERWISE BE CHARGED ON THE AGGREGATE AMOUNT OF ASSETS REALISED AND BROUGHT TO THE CREDIT BY THE LIQUIDATOR UNDER THE COMPANIES (FEES AND PERCENTAGES) ORDER.
THE AMOUNT OF THIS FEE WAS ESTIMATED AT HK$59 MILLION.
ONLY FEES LIQUIDATOR
ASSUMING THE APPROVAL OF THE COURT IS OBTAINED, THE THAT THE OFFICIAL RECEIVER WOULD CHARGE FOR BEING THE (INCLUDING HIS SERVICES AS PROVISIONAL LIQUIDATOR) OF BCCHK WOULD BE BASED UPON THE HOURS WORKED BY THE STAFF OF THE OFFICIAL RECEIVER'S OFFICE ON BCCHK SINCE IT WENT INTO PROVISIONAL LIQUIDATION ON JULY 17, 1991 ON A TIME-COST RECOVERY SCALE.
UP TO MAY 31, 1992, MR HEARDER SAID THE FEES CALCULATED ON THIS BASIS TOTALLED $6.5 MILLION, AND WOULD CONTINUE DURING THE PROGRESS OF THE LIQUIDATION ALTHOUGH THE NUMBER OF OFFICIAL RECEIVER'S STAFF WORKING OF BCCHK HAD BEEN CONSIDERABLY REDUCED.
THE WAIVER OF THE INTEREST PAYABLE AND THE APPROVAL FOR THE OFFICIAL RECEIVER TO APPLY TO COURT FOR AD VALOREM CHARGES BY THE FINANCIAL SECRETARY FOLLOWS AN UNDERTAKING GIVEN ΤΟ THE FINANCE COMMITTEE ON JULY 19, 1991, WHEN A GOVERNMENT INDEMNITY WAS GIVEN то THE OFFICIAL RECEIVER AND TO THE SPECIAL MANAGERS, IN ORDER TO MAKE AN INTERIM RELIEF DISTRIBUTION TO CREDITORS OF 25%, UP TO A MAXIMUM OF $500,000, THAT THE FEES AND CHARGES OF THE OFFICIAL RECEIVER WOULD BE REDUCED IF BCCHK WENT INTO LIQUIDATION.
MR HEARDER SAID THE FINANCIAL SECRETARY HAD BEEN ABLE ΤΟ APPROVE THE WAIVER OF THESE FEES AND CHARGES AS BCCHK WAS AN EXCEPTIONAL LIQUIDATION CASE WHICH COULD BE DISTINGUISHED FROM OTHER LIQUIDATIONS.
/BCCHK HAD