TNAG-1269-FCO40-1619-Banking-situation-in-Hong-Kong-1983 — Page 85

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

liberations by the creditors or in any

respect of the debt re-scheduling propogate.

liations

in

116-

Also,

a result of BMFL pursuing its own!

BMFL has allowed the Carrian

independent line of action,

Group to show only minor indebtedness to

BHFL by CIL,

Us$110 million

amount, US$90

whereas in fact, the indebtedness by CIL i

exclusive of accrued interest. of this

million has between 18th October 1982 and March 1983 been

transferred from the books of CIL to CHL. The net result

is that only Metin Limited, ̈‚a subsidiary of .CIL, shows a

principal debt of US$20 million to BMFL. Therefore,

despite repeated requests by Price Waterhouse, “CIL's

Auditors, BMFL has not so far indicated the full amount of

CIL's' debt.

1

7.

The

Tan,

independent action of BMFL and

Chairman of the Carrian Group of

MI. George

Companies,

culminated in the October 4th Agreements by which, as

replacement of all securities held by BMFL, the US assets

of CIL would be charged to BMFL for all outstanding

indebtedness of CIL, CHL and their related borrowers.

The

US assets were said by Mr. Tan to be worth well over

US$600 million and, by recent valuation. made by the Bank's.

own Valuers, are worth approximately US$300 million.

8.

The October 4th Agreements envisaged the' making

of a

new loan of US$500 million upon the security of CIL'8

3

!

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