Update from Curator
We would like to keep depositors informed on progress being made with the
curatorship. We are still not in a position to make any definite
predictions for the future of the Bank but the following information will be
of interest to you:
Restructuring of the Bank
As previously advised to you, we are still pursuing the possibility of
disposal of the Bank as a going concern. I am sure that you will agree that
we need to bring some certainty into the situation as soon as possible.
From our investigations it would appear that the likelihood of success is
diminishing daily and consequently we have decided not to pursue going
concern enquiries beyond the end of August 2001. In this event, two
scenarios are likely:
? Preferably, a scheme of arrangement under Section 311 of the
Companies Act. This will be the option we will pursue if at all possible,
as it is definitely preferable for staff and probably for depositors.
However, this route is also fraught with delays and difficulties.
? Failing all else, the second option is liquidation.
Please be assured that we are continuing discussions with various parties
aimed at achieving a solution that ensures minimum prejudice to depositors,
shareholders and to employees.
Solvency of the Bank
We have now concluded that it is doubtful whether the assets of the Bank
will prove to exceed its liabilities. However due to the complexity of some
of the issues we are trying to resolve, this calculation is very difficult
to perform with any accuracy.
Liquidity situation
The Bank still does have a liquidity buffer and we are continuing to address
attention to applications for relief of hardship. Please note that we have
very strict guidelines for what qualifies as "hardship" and are applying
these rigorously.
Conclusion
We regret that the news is not good but please be assured that we will try
our utmost to fulfil our mandate contained in Section 69 of the Banks Act
i.e. "conduct the management (of the bank) in such a manner as the Registrar
may deem to best promote the interests of the creditors of the bank
concerned and of the banking sector as a whole".
RK Store
Curator
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