HC Deb 21 November 1996 vol 285 cc675-7W
Mr. Vaz

To ask the President of the Board of Trade what are the fees and expenses of Deloitte and Touche in the English liquidation of BCCI to date. [5456]

Mr. John M. Taylor

The totals of the UK liquidator's remuneration and expenses in the period to 15 January 1996, the date to which the liquidators last annual report was made up, were respectively US$203.6 million and US$6 million.

Mr. Vaz

To ask the President of the Board of Trade what are the current estimates in terms of timing and percentage amounts of dividend payments for BCCI creditors; what is the current estimate of the aggregate total of dividends to BCCI creditors which will be paid; and by when they are expected to have been paid. [5451]

Mr. Taylor

The liquidators plan to pay a dividend of 24.5 per cent. on 10 December 1996. They hope to pay a further substantial dividend in 1997.

Mr. Vaz

To ask the President of the Board of Trade what was the value of expenditure authorised by him on request from the liquidators of BCCI before the election of the creditors committee. [5297]

Mr. Taylor

In a winding up by the court there is initially no liquidation committee; section 141(5) of the Insolvency Act 1986 provides that the functions of the committee are vested in the Secretary of State. These functions relate principally to the granting of sanction to the liquidators to compromise debts, to bring or defend legal proceedings on behalf of the company and to carry on its business so far as may be necessary for the beneficial winding up of the company's affairs.

In the period prior to the formal establishment of the liquidation committee—that is, between 14 January, the date of the winding-up order made against BCCI (SA), and June 1993—sanction to commence legal proceedings was given in 1,388 cases, including 933 cases in which proceedings were to be issued against credit card debtors. In addition to those sanctions in respect of legal proceedings, numerous compromises of debts due to the company were also sanctioned.

Where the liquidators invited the Secretary of State to grant such sanctions, the matters had previously been referred to and approved by the informal creditors committee which existed at that time unless the amounts involved were lower than the de minimis level set by the informal creditors committee. The extent of the expenditure involved in the bringing of the sanctioned legal proceedings could only be calculated at disproportionate cost.

Mr. Vaz

To ask the President of the Board of Trade what is the procedure for the proper regulation and monitoring of costs in the English liquidation of BCCI. [5455]

Mr. Taylor

These are matters which the liquidation committee appointed by the creditors consider on a regular basis. Where any person is aggrieved by any act or decision of the liquidator they may apply to the court.

Mr. Vaz

To ask the President of the Board of Trade when he last met the liquidators of BCCI. [5296]

Mr. Taylor

My officials last met the UK joint liquidators of BCCI (SA) on 6 September 1996.

Mr. Vaz

To ask the President of the Board of Trade what are the costs of the English BCCI liquidation to date. [5454]

Mr. Taylor

Payments out of the UK liquidation in the period to 15 January 1996, the date to which the liquidators last annual report was made up, totalled US $491.5 million.

Mr. Vaz

To ask the President of the Board of Trade (1) what are the worldwide assets of the BCCI companies, excluding those countries which have ring-fenced their assets; what proportion of the assets is available for distribution to creditors; and what factors have led to the remaining assets being unavailable for distribution. [5450]

(2) what is the aggregate amount for which proofs of debt have been received worldwide, excluding duplicate proofs of debt and proof of debts submitted in countries which have ring-fenced; and what proportion of the amount is disputed; [5449]

(3) what are the global costs of Deloitte and Touche's fees in respect of the BCCI liquidation to date; [5453]

(4) what are the total worldwide liabilities of the BCCI companies, excluding those countries which have ring-fenced their assets; [5448]

(5) what are the global costs of the BCCI liquidation to date. [5452]

Mr. Taylor

These are matters for the liquidators in the various jurisdictions.

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