6
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records showed that the debt owed to BMFL by the Carrian Group at
April 1983 was HK$4181 million with 90% of this debt being
expressed and repayable in US dollars. This debt was shown to
have increased to HK$4622 million in June 1983. The relevant ledger
sheet is attached and marked "RF3". In particular whereas this
documentation stated that US$110 million, exclusive of accrued
interest, is owed by CIL to BMFL, BMFL has allowed the Carrian
Group to show only minor indebtedness to BMFL by CIL.
*
18.
THUS, in early September 1983, the documents which had
been put to me 'by the Wardleys and Hambros included the CHL
scheme documents and the draft recommended proposals for the
approval of the CIL scheme, including the reorganisation of its
capital. Approval of this second document would cause the stock
exchanges to agree to the listing and trading of the new equity
for CIL. In addition Wardleys also sought approval of a scheme,
with a necessary waiver of Takeover Code requirements, for the
sale of a major holding of the equity in China Underwriters Ltd.
(one of the two listed subsidiaries of CIL) to Malaysian interests.
19.
IN contrast to the debts shown in the BMFL records as
stated in paragraph 17 above, the respective CIL and CHL debt
restructuring proposal accounts show only that BMFL is owed about
US$35 million by CHL and nothing by CIL and its subsidiaries. The
Carrian Group indebtedness appeared therefore to be understated
in the debt restructuring proposal accounts to a substantial and
material degree.
No comments yet.
Private notes are available after approval.