TNAG-1269-FCO40-1619-Banking-situation-in-Hong-Kong-1983 — Page 70

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28.

In

FROM time to time the relevant dates for approval by

creditors of the CHL and CIL Schemes have been extended.

addition the deadline by which the escrow monies were to be

uplifted was extended on various occasions. More importantly,

the escrow monies which, as I have pointed out earlier, are

crucial to the success of any scheme are now no longer available;

the latest extension for their utilisation expired at midnight

on Monday the 3rd October 1983, the deed relating to these escrow

monies having lapsed at that time. For this reason both Hambros

and Wardleys respectively advised CIL and CHL and the creditors

of the Carrian 'Group that there is no "adequate assurance to

eligible creditors in the current circumstances" (of further

availability of the escrow monies)" and that, upon the terms

stated in the communication", (from) "the provider of escrow fund"

(that) "the conditions are incapable of fulfilment".

29.

ON the afternoon of Tuesday 4th October 1983, the

provider of the escrow monies informed Wardleys that in certain

circumstances, the provider would consider again making the

monies available. However Wardleys and Hambros informed CHL, CIL

and the eligible creditors that this information did not change

their earlier advice. Copies of this advice are also attached

and marked "RF12".

30.

IN the light of the foregoing it would appear that the

debt restructuring proposals cannot be proceeded with. Furthermore,

creditors could well argue not only that they had suffered loss

in the time taken in considering the scheme over a long period

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