Caledonian Bank Limited (In Official Liquidation)

Caledonian Bank Limited (In Official Liquidation) (the “Bank”) and Caledonian Securities Limited (In Official Liquidation) (“Securities”) were each placed into Controllership on 10 February 2015 by the Cayman Islands Monetary Authority (“CIMA”) and Mr. Keiran Hutchison and Claire Loebell of Ernst & Young Ltd. were appointed as Joint Controllers.

The banking licence of the Bank was revoked by CIMA and upon hearing a winding up petition presented by CIMA on 23 February 2014, the Grand Court of the Cayman Islands ordered that both the Bank and Securities be wound up and appointed Mr. Keiran Hutchison and Claire Loebell as Joint Official Liquidators of the Bank and Securities (the “JOLs”).

In accordance with Order 8, Rule 2 of the Companies Winding Up Rules 2008 (as Amended), the JOLs are in the process of reviewing and safeguarding the assets of the Bank and Securities and have also convenedthe first meeting of creditors for the purposes of providing a substantive update to stakeholders, electing a liquidation committee and dealing with such other matters that the JOLs think fit. The meeting of creditors for the Bank is scheduled to take place on 16 April 2015 whilst the meeting of creditors for Securities is scheduled to take place on 17 April 2015, both of which will be held at the Marriott Hotel in the Cayman Islands at 10:00 am on the relevant day. Attendance can be in person or by proxy (including by way of teleconference) but it should be noted that confirmations of attendance and/or the appointment of a proxy must be provided to the JOLs by no later than 6:00 pm (Cayman Islands Time) on 13 April 2015. Stuarts have been corresponding with the JOLs to ensure our clients’ claims relating to both the Bank and Securities are properly recorded and to ensure our clients are represented at those meetings. We also provide our clients  with regular updates on the process and any developments. 

In the meantime, the JOLs have confirmed that each deposit holder with the Bank (other than those excluded pursuant to the provisions of the Companies Act (2013 Revision)) will shortly receive a priority return of up to KYD 20,000 with perhaps a further proportion of any outstanding debts to follow shortly thereafter by way of an interim dividend. Any balance payable to deposit holders (or such proportion thereof as the available assets permit) will then be paid out at the completion of the liquidation. An initial report from the JOLs as to the financial state of each of the Bank and Securities is expected imminently and, in any event, prior to the meetings of creditors. Such report is likely to provide far more detailed information than has currently been received to date as to the potential for recovery of deposits.

Please contact us if you are a depositor with the Bank or would like us to attend either of the meetings of creditors as your proxy.