TNAG-1269-FCO40-1619-Banking-situation-in-Hong-Kong-1983 — Page 63

11.

ON the 13th April 1983 Hambros announced that the

earlier CIL restructuring proposals had been revised and

resubmitted to creditors. Under the revised proposals CIL

creditors were requested to agree that part of the debts owed

to them be converted into CIL shares and equity. In addition

new capital would be subscribed using the escrow monies. The

object of the revised proposals was to enable the market value

of CIL's assets to match its total indebtedness, and

consequently therefore, to enable CIL to continue trading.

The availability of the escrow monies was crucial to the

implementation of the revised proposals.

12.

THE foregoing revised proposals were also conditional

upon satisfactory arrangements being agreed between CHL and its

creditors.

13.

UPON satisfaction of all conditions precedent and

approval of both the CIL and CHL schemes being obtained, the

intention was that appropriate resolutions would be submitted

to respective CHL and CIL shareholders and warrant holders for

approval. Once such approval had been obtained it was then

intended that applications would be made for the new CIL shares

and equity to be quoted on the relevant listing stock exchanges,

and also for the resumption of trading on these exchanges of the

existing shares in CIL and its two listed subsidiaries.

14.

ON the 27th April 1983 the Securities Commission pursuant

to section 127 of the Securities Ordinance ("Cap. 333") appointed

inspectors (hereafter referred to as "the Inspectors") to

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