XN000022-1991-07-19 — Page 12

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FRIDAY, JULY 19, 1991

DISTRIBUTION

WILL

BE

MADE OUT OF THE WITH THE BCCI

THE EARLY PARTIAL INSTITUTIONS' LIQUID ASSETS, AND CREDITORS ASSOCIATED GROUP WOULD NOT BENEFIT FROM THIS EARLY REPAYMENT.

COVER

THAT THE

"WHILE THE INSTITUTIONS HAVE SUFFICIENT LIQUID ASSETS TO PAYMENT, THE LIQUIDATOR AND SPECIAL MANAGERS HAVE INDICATED EARLY REPAYMENT SCHEME CAN ONLY GO AHEAD IF AN INDEMNITY IS PROVIDED," THE SPOKESMAN SAID.

ΤΟ ACCEPT

OF PROVISJON

AN

THE FINANCE COMMITTEE WAS AGREED AT TODAY'S MEETING

ARISING FROM THI LIABILITY THE CONTINGENT INDEMNITY TO THE LIQUIDATOR AND SPECIAL MANAGERS.

SUCH

THERE "BASED ON INFORMATION AVAILABLE, IT IS NOT EXPECTED THAT

THE GOVERNMENT, A9 WILL BE ANY SUBSTANTIAL LIABILITY ON THE PART OF

BE MUCH DEPOSITORS' AND OTHER CREDITORS' ULTIMATE ENTITLEMENT SHOULD HIGHER THAN THE AMOUNT OF THE EARLY PARTIAL DISTRIBUTION.

"THIS. HOWEVER,

HAS

ACCOUNT

INTO TAKIN

ANY HIDDEN THE SPOKESMAN SAID, ADDING THAT LIABILITIES ALTHOUGH

LIABILITIES OF THE INSTITUTIONS," THERE WAS NO EVIDENCE OF ANY SIGNIFICANT HIDDEN THIS COULD NOT BE ENTIRELY RULED OUT.

THE INSTITUTIONS, AS FAR AS THE

ASCERTAIN, WERE SOLVENT

RESPECTIVE

COMMISSIONER OF BANKING CAN AS GOING COCERNS BEFORE THEIR BUSINESSES WERE SUSPENDED ON JULY 8, 1991.

"THERE IS ALSO NO EVIDENCE SUGGESTING THAT EITHER IS IMPLICATED IN THE ALLEGED FRAUD INVOLVING THE BCCI GROUP.

INSTITUTION

PROVIDED BY INFORMATION

THE "ON THE BASIS OF

INSTITUTIONS* ESTIMATED IT IS

THAT ON LIQUIDATION, AUDITORS, PRICE WATERHOUSE,

A HIGH PROPORTION RECEIVE

OF THE NET DEPOSITORS WILL ULTIMATELY BALANCE OF THEIR DEPOSITS, THE SPOKESMAN ADDED.

F

ROUGH ESTIMATE, THE AROUND THE TOTAL

DISREGARDING HIDDEN LIABILITIES AND AS A MAXIMUM CONTINGENT LIABILITY, IN THEORY, SHOULD BE AMOUNT OF THE EARLY DISTRIBUTION, THAT IS, ABOUT $1.44 BILLION.

THE FINANCE

COMMITTEE

TIME

OF WITH $10.6

WAS

THAT INFORMED

AT THE STILL HAS ABOUT 40,000 DEPOSITORS SUSPENSION, BCCHK HAD AND 50,000 DEPOSIT ACCOUNTS. THE TOTAL AMOUNT OF DEPOSITS IS ABOUT BILLION, WITH ABOUT $3 BILLION PLEDGED AS COLLATERAL AGAINST LOANS.

IS PLEDGED

LIMITED HAS ONLY SIX DEPOSITORS BOCH FINANCE INTERNATIONAL WITH LOCAL DEPOSITS OF $10.4 MILLION, $3 MILLION OF WHICH AS COLLATERAL AGAINST LOANS.

COMMITTEE THE FINANCE LIQUIDATORS DID NOT PRECLUDE A CONCERNS.

WAS TOLD SALE OF

THAT THE

OF APPOINTMENT THE INSTITUTIONS AS GOING

то SELL THE INSTITUTIONS

THE LIQUIDATORS HAVE THE AUTHORITY WITHOUT THE CONSENT OF THE HOLDING COMPANY OF THE INSTITUTIONS.

HOWEVER, IN VIEW

OF POTENTIAL

BUYERS'

WITHOUT SOME

NATURAL APPREHENSION OVER THE HIDDEN LIABILITIES OF THE INSTITUTIONS, A SALE FORM OF GOVERNMENT GUARANTEE IS HIGHLY UNLIKELY. CHANCES ARE THAT INSTITUTIONS WILL HAVE TO BF LIQUIDATED.

THE

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