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Liquidators call first creditors’ meeting for Caledonian

| 24/03/2015 | 0 Comments
Cayman News Service

Caledonian House, George Town

(CNS Business): Creditors for Caledonian bank are scheduled to have their first meeting with the liquidators next month as they begin the process of finding out who the bank owes and how much. One of Cayman’s oldest offshore banks, Caledonian and Caledonian Securities were brought to their knees last month when the Securities and Exchange Commission (SEC) filed suit against the institutions following allegations that they and three other companies were involved in a $75 million shell company scam.

The firm was placed in the hands of controllers appointed by the Cayman Islands Monetary Authority (CIMA) and its licences were revoked. Keiran Hutchison and Claire Loebell from Ernst and young were then appointed the official liquidators. The pair will now host the meeting on 16 April, according to a local notice.

The liquidators will be looking to assess the creditors and stakeholders following the bank’s collapse and are understood to be looking for buyers. Currently the bank’s operations remain suspended.

According to local law firm Solomon Harris, which has been representing some of the bank’s stakeholders, there are concerns that shareholder equity may be insufficient to meet the sums claimed by the SEC.

“Although the Cayman regulator has moved swiftly to react to the SEC filing and do all that is possible to protect customers of Caledonian Bank and Caledonian Securities, and it is clear the Controllers will do the same, the ramifications of the situation are potentially serious for customers of Caledonian Bank,” the attorneys warned.

The meeting will take place at 10am on 16 April at the Marriott Beach Resort but stakeholders can also participate by phone or webcam.

To attend the meeting, contact the liquidators at Ernst Young

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Category: Finance, Financial Crime, Financial Services, Uncategorized

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