HC Deb 25 June 1996 vol 280 cc60-2W
Mr. Vaz

To ask the President of the Board of Trade how long the victims of BCCI have been waiting for compensation from the liquidators. [34512]

Mr. Oppenheim

The provisional liquidation of BCCI SA in England commenced on 5 July 1991. The liquidation of BCCI SA in England commenced on 14 January 1992.

Mr. Vaz

To ask the President of the Board of Trade what is the expected percentage payment on the first dividend to the creditors of BCCI. [34562]

Mr. Oppenheim

The liquidators hope that the first dividend will be at least 20 per cent., but ultimately the dividend is a matter for the Luxembourg liquidators and the liquidators of BCCI overseas. Both the timing and the value of the dividend are subject to matters which are before the courts in England, Luxembourg and the Cayman Islands.

Mr. Vaz

To ask the President of the Board of Trade when he expects the payment of a first dividend to the victims of BCCI. [34560]

Mr. Oppenheim

The joint liquidators hope that payment of a first dividend will be made in the autumn of 1996.

Mr. Vaz

To ask the President of the Board of Trade what assessment he has made of the reasons for the time taken to resolve the conflicting laws of set-off between the jurisdictions of Luxembourg and English law. [34513]

Mr. Oppenheim

None. These are matters for the joint liquidators.

Mr. Vaz

To ask the President of the Board of Trade if he will make the solicitors currently in receipt of fees as a result of the liquidation of BCCI and the amounts that each has received. [34558]

Mr. Oppenheim

This is a matter for the joint liquidators and the information is not held by my Department.

Mr. Vaz

To ask the President of the Board of Trade when he last(a) met the liquidators of BCCI and (b) received a statement from the liquidators of BCCI. [34515]

Mr. Oppenheim

(a) My officials last met the joint liquidators on 31 March 1995.

(b) Three reports have been made available to the Secretary of State under regulation 12—latterly regulation 14—arising from the Insolvency Act. The last report, made up to 14 January 1995, was published on 31 July 1995.

Mr. Vaz

To ask the President of the Board of Trade how many(a) creditors and (b) former employees are currently awaiting compensation from the liquidators of BCCI. [34561]

Mr. Oppenheim

My officials are advised that a total of 35,689 claims have been made in the English liquidation of BCCI SA. Included in this total are claims from 1,077 former employees; some of these former employees are net debtors of BCCI.

Mr. Vaz

To ask the President of the Board of Trade what is the total amount of funds held by the liquidators of BCCI. [34559]

Mr. Oppenheim

My officials are advised that the total amount of funds held by the English liquidators at 15 May 1996 was US$668 million. In addition, the English liquidators have a share in funds held jointly by the liquidators of the principal BCCI estates totalling US$ 2.2 billion at 15 May 1996.

Mr. Vaz

To ask the President of the Board of Trade what are the current total fees paid to(a) the liquidators of BCCI, Touche Ross and (b) the solicitors of BCCI, Lovell White Durrant. [34557]

Mr. Oppenheim

My officials are advised that:

  • (a) The total fees drawn by the English liquidators for the period 5 July 1991 to 15 January 1996 amount to US$203.6 million.
  • (b) The total legal fees paid by the English liquidators to all legal advisers, including Messrs Lovell White Durrant, for the period 5 July 1991 to 15 January 1996 amount to US$82 million.

Mr. Vaz

To ask the President of the Board of Trade when the liquidators indicated to him the difficulties in the conflict of laws of set-off. [34514]

Mr. Oppenheim

These are matters for the joint liquidators. The pooling agreement authorised by the English court in June 1992 expressly reserved the right of the English court to make provisions before transmitting funds to Luxembourg. My officials are advised, however, that the issues affecting these provisions could not be addressed until the claims admission process was sufficiently advanced.

Mr. Vaz

To ask the President of the Board of Trade what steps he is taking to assist the liquidators of BCCI to reach an agreement with the Luxembourg liquidators.[34563]

Mr. Oppenheim

Any such agreement is a matter for the joint liquidators.