TNAG-1269-FCO40-1619-Banking-situation-in-Hong-Kong-1983 — Page 62

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8.

SHORTLY AFTERWARDS CHL announced that its controlling

shareholders would make available HK$250 million to CIL and/or

CHL and various of their subsidiary companies (hereafter referred

to as "the Carrian Group"). At the same time the Hongkong &

Shanghai Banking Corporation Limited (hereafter referred to as "HSBC") publicly confirmed that it was prepared to make available a credit facility of HK$250 million. The first of these sums was

placed in escrow (hereafter referred to as "the escrow monies"):

these monies to be used when agreement was reached with creditore

to the debt restructuring proposals which were duly formally

forwarded to those creditors.

ON the 3rd January 1983 trading in the shares of CIL and

in its two related listed subsidiaries were formally suspended by

the relevant listing stock exchanges.

9.

10.

The

ON the 26th February 1983 the Directors of CHL publicly

announced that the balance of the said HK$250 million, being

HK$225 million had been placed in escrow with the HSBC by the

party connected with the controlling shareholders of CHL.

escrow monies would in due course be provided to CIL and CHL upon

condition that satisfactory arrangements would be made between

creditors of the Carrian Group and the Group itself on or before

1st May 1983. At the same time it was also publicly announced

that Hambro Pacific Limited (hereafter referred to as "Hambros")

as from 28th February 1983 would become joint financial advisers

with Wardleys to CIL to assist in the implementation of the debt

restructuring proposals.