The Joint Liquidators of Stanford International Bank Ltd – in Liquidation (SIB), Nigel Hamilton-Smith and Peter Wastell of Vantis Business Recovery Services, wish to provide an update regarding the location and status of known SIB assets and their recovery. The international pursuit of SIB assets for creditors continues to be the central feature of the recovery process and, in the interests of transparency and a commitment to regular communication with affected stakeholders, further communications will be issued as and when developments take place.
To date, circa US$100 million has been located in the United Kingdom (UK). In order to gain control of these assets, the Joint Liquidators sought formal recognition of their appointment. On 3 July 2009, the High Court of Justice of England and Wales issued a judgment in favour of the Joint Liquidators, confirming that the Centre of Main Interest of SIB is Antigua and Barbuda. An appeal against this decision by the US Receiver, Mr Ralph Janvey, was heard by the High Court between 16 and 20 November 2009. The hearing also dealt with an appeal from the UK Serious Fraud office on behalf of the United States of America (US) Department of Justice (DOJ) which has sought to restrain the same funds for forfeiture to the DOJ as proceeds of crime. The outcome is awaited and further notification will be issued when the judgment is handed down.
In the US, several proactive and meaningful discussions have been held with the US Receiver and his advisers, and the Joint Liquidators are hopeful that a working co-operation agreement can be established. As such, an agreement will be subject to regulatory and judicial approval in both jurisdictions. A conclusion is unlikely before March 2010, but a successful cooperation of this kind will lead to a significant reduction in costs for the SIB creditors.
In Antigua, at the commencement of winding-up, an application by a creditor was made for an alternate office holder. This was unsuccessful in the Antiguan courts. A further application by the same creditor has again been made and this matter will be before the courts in the near future. It is not believed that this application holds any merit, nor any legal basis. However, this further piece of litigation will need to be settled by the Antiguan judiciary.
In the meantime, the Joint Liquidators have been successful in tracing substantial investments into offshore companies which have revealed significant land assets in Antigua, valued in excess of US$150 million. Additional land holdings, registered in other Caribbean companies originally controlled by Mr Allen Stanford, are currently being investigated. It is expected that realizations from these sources will become available to creditors.
Significant lines of inquiry are also being pursued regarding claims against Mr Stanford. The Joint Liquidators anticipate this will result in a further realization of assets.
The Joint Liquidators have made an application under the Bankruptcy & Insolvency Act in Canada for recognition of its appointment and control of the funds held in the country. These number approximately US$20 million. At the same time, Mr Janvey made the same application. During August 2009, the Superior Court of Quebec held a hearing, following which it concluded that Mr Janvey should be recognized and control of the funds should be passed to him.
Legal counsel for the Joint Liquidators considered that the decision provided by the court was erroneous and, accordingly, submitted an appeal that was heard during December 2009. The Court of Appeal upheld the decision. The Joint Liquidators retain the right to take this matter to the Supreme Court of Canada and the matter is currently with their legal advisers.
In Switzerland, applications have been made to the Swiss Financial Regulator, FINMA, for recognition and control of the assets based in the country, valued in excess of US$100 million. In addition to the Joint Liquidators’ application, Mr Janvey and the DOJ have made a similar application for control of the funds. The matter is currently with the Swiss Financial Services Regulator and the decision is pending.
Both Nigel Hamilton-Smith and Peter Wastell are keen to ensure that the interests of the creditors remain paramount throughout all these proceedings.
The Vantis Online Claims Management System is proving to be instrumental in assisting with the agreement of several thousand SIB creditors’ claims. Any creditor who has not yet registered their claim, is urged to do so at http://stanford.vantisplc.com/ to ensure any early agreement of claims.
Further communications will be issued when practicable.
For information relating to SIB, creditors are invited to visit www.vantisplc.com/Stanford or email stanfordenquiries@vantisplc.com.
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