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depending on whether or not the Government of Abu Dhabi had come forwari with the support I had sought. When I informed those present that that support was not forthcoming, it was agreed by all that the bank should not open for business that day, It was considered that it would be fairer to depositors in general to draw the line at that point before BCCHK suffered serious cash withdrawals which would benefit some depositors at the expense of others. Accordingly, I took control of the business of the bank on the morning of Monday, 8 July and ordered the bank not to open its doors.
The press release that wa:: issued on the morning of Monday,
3 July is at Enclosure VII. The business of the bank was further restricted from that time and, as I have already stated, it was instructed forthwith not to pay any cheques or cashiers' orders drawn upon it or to nake any other payments. Subsequent to taking control, ny Office was concerred to safeguard the assets of the bank and, to this end, a substantial amount of funds previously held in overseas banks was deposited during the following days ir an account under my control opened by BCCHK with the HongkongBank Group; and the bank, acting unc.er my control, took active steps to recover amounts due to it from its debtors. Efforts were made to help the bank's customers by releasing trade documents, where this could be done without prejudice to depositors' interests.
37. t was clear that the bank could not be allowed to remain long in a state of suspension without doing serious damage to its value as a going concern. My office had, therefore, already sought to identify and contact potential buyers of the bank. It was clearly, recognised that the sale of the bank as a going concern to a suitable purchaser was the best available option. Equally, if this did not prove to be possible, and if the majority shareholders continued to remain on the sidelines, the only other option seemed to be to move to wind up the bank under the terms of the Banking Ordinance.
38. Eefore a petition for the winding-up of a bank can be presented, the Ordinance requires certain steps to be followed. The Commissioner of Banking must first report the circunstances to the Governor in Council. The authorised institution in question must be given at least 7 days' notice of the intention to make such a report and be given the chance to make representations (which then form part of the Commissioner's report to the Governor in Counc..1). Having received the Commissioner's raport, the Governor in Council may then direct the Financial Secretary to present a petition
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(ESNOH IO9) 301330 SWWOD £2:81 60-80-T66T
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