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September 15, 1998
NOTICE TO CREDITORS
OF
FIRST CAYMAN BANK LTD. (In Liquidation)
(hereinafter “the Bank”)
We write to
provide you with an update on the actions
and issues associated with the liquidation
of the Bank. The Consultative Committee of
Creditors (“COC”) have to date
held two meetings with the Liquidators, the
latest being on August 21, 1998. The Liquidators
have been focusing their efforts on resolving
the key issues identified to the COC. Creditors
may contact the COC directly, in writing,
c/o Charles Reed, P.O. Box 10673 APO, Grand
Cayman, BWI.
To date the
total net recoveries are approximately US$9.9
million and the estimated value of the remaining
assets is US$8.1 million. The recorded value
of creditors’ claims is currently US$29.6
million, which represents approximately 3,000
claims.
With respect
to the loan portfolio, the Liquidators’
efforts to sell the major portion of the loan
portfolio en bloc have not been successful.
The Liquidators are therefore currently reevaluating
the collection strategy.
In accordance
with the strategy agreed with the COC, the
Liquidators focused their investigative efforts
on the former directors and officers of the
bank. The Liquidators have initiated discussions
with these parties in an attempt to negotiate
a settlement of potential claims against them.
Several key
events must take place before an interim dividend
payment can be declared. These include the
sale of the Bank building and settlement of
the various ongoing negotiations with third
parties. The Liquidators believe that the
resolution of these issues should provide
sufficient funds to declare an interim dividend.
The estimated total dividend rate remains
in the range of 45% to 55% based on the given
figures for assets and liabilites. Once the
Liquidators have resolved the above mentioned
issues, they will be in a position to provide
a time frame for payment of an interim dividend.
Yours sincerely,
Michael Pilling
Official Liquidator
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