XN000022-1991-07-08 — Page 7

6

MONDAY, JULY 8. 1991

·

"BY FRIDAY, WE WERE EXPECTING AN ANNOUNCEMENT IN LONDON OVER THE WEEKEND WHICH WE THOUGHT WOULD AFFECT THE MARKETS IN HONG KONG AND IN OTHER COUNTRIES ON MONDAY. LATE ON FRIDAY AT 6 O'CLOCK IN THE EVENING (HK TIME) WE WERE TOLD THAT AN ANNOUNCEMENT WAS GOING ΤΟ BE MADE IN LONDON AT 8 O'CLOCK THAT EVENING AND ALSO IN LUXEMBOURG.

"THIS MEANT THAT WE HAD TO BRING FORWARD OUR OWN ANNOUNCEMENT ABOUT BCCHK BEFORE WE HAD A CHANCE TO TALK TO THE ABU DHABI GOVERNMENT ABOUT WHAT OUR PLANS WERE IN RELATION TO THE HONG KONG OPERATIONS HERE.

"OUR CONCERN AT THAT TIME WAS TO TRY AND KEEP THE BANK OPEN IF WE COULD. OUR PERCEPTION WAS THAT WE WERE DEALING WITH A BANK WHICH WAS NOT INVOLVED THE SUSPECTED FRAUD WHICH HAD BEEN IDENTIFIED ELSEWHERE IN THE BCC GROUP. WE CONSIDERED IT TO BE A SOUND AND VIABLE BANK WHICH WAS NOT INVOLVED IN THE PROBLEMS OF THE REST OF THE GROUP AND SHOULD BE GIVEN A CHANCE TO SURVIVE. THAT WAS BECAUSE WE FELT IT WAS IN THE INTEREST OF DEPOSITORS. SO WE TOOK THE VIEW AT THAT STAGE THAT WE WOULD NOT CLOSE THE BANK ON SATURDAY AND WE ALLOWED IT ΤΟ OPEN.

ASKED ABOUT THE BANK'S FUTURE, MR. CARSE SAID: "WB ARR LOOKING AT VARIOUS OPTIONS. AS I SAY ONE OPTION IS TO TRY AND MAKE PROGRESS WITH THE ABU DHABI SHAREHOLDERS. BUT I DON'T WANT TO UNDERESTIMATE THE DIFFICULTIES OF SECURING THAT AGREEMENT AND REOPENING THE BANK. I DON'T WANT TO HOLD OUT ANY FALSE HOPES IN RESPECT.

TI

THEN

THAT

MIGHT WE

"ANOTHER POSSIBILITY IS WHETHER A BUYER FOR THE EMERGE. WE ARE AWARE OF VARIOUS INTERESTED PARTIES, BUT OBVIOUSLY ARE TALKING ABOUT DIFFICULT CIRCUMSTANCES. ANY BUYER HAS GOT TO LOOK CLOSELY AT THE BANK BEFORE BUYING IT. SO AGAIN I DON'T WANT TO HOLD OUT FALSE HOPES IN THAT AREA.'

MR.

WE

CARSE ADDED THAT FOR THIS OPTION, THE COMMISSION wout.b ACT AS MIDDLEMAN. "PEOPLE HAVE COME TO US AND EXPRESSED INTEREST. HAVE TRIED TO PASS ON THAT INTEREST TO THE ABU DHABI GOVERNMENT SO THAT THEY ARE AWARE THAT THERE IS A POSSIBILITY OF A SALE. BUT THAT DECISION RESTS WITH THEM AT THE MOMENT. TECHNICALLY THE POSITIION IS THAT THE HONG KONG OPERATIONS OF BCC ARE OWNED BY A HOLDING COMPANY IN LUXEMBOURG, BCC(HOLDINGS), WHICH IS 77 PER CENT OWNED BY THE ABU DHABI GOVERNMENT.

Th

"AND I HAVE TO SAY THAT WE CANNOT RULE OUT THE POSSIBILITY THAT WE MIGHT BE OBLIGED TO PLACE THE BANK IN LIQUIDATION,

I MR. CARSE SAID OF THE THIRD OPTION.

ASKED WHEN WOULD A DECISION BE MADE, EXAMINING THE SITUATION ON A DAY BY DAY BASIS. WHEN A DECISION WILL BE REACHED EXCEPT THAT WE QUICKLY AS POSSIBLE.

HE SAID: "WE WILL Bk WE CAN'T REALLY SAY WILL TRY TO DO 30 Ás

BCCHK.

MR. CARSE SAID THE GOVERNMENT HAD MADE NO USE OF THE EXCHANGE FUND IN THIS CASE. "NO MONEY HAS BEEN LENT BY THE EXCHANGE FUND TO

AND THERE ARE NO PLANS TO USE THE EXCHANGE FUND

ACQUIRE

ΤΟ

BCCHK.

/ASKED ABOUT