In an effort to keep you informed, below are some of the actives the Joint Liquidators have been working on since the filing of our last report.

The Creditors Advisory Committee

The CAC has been re-formed and a meeting was held recently to discuss the current status of the liquidation and its future plans. Some of the salient initiatives are listed below.

TD Bank Litigation

TD has filed its Amended Statement of Defense and the JLs are in the process of preparing and finalizing our Reply. Meanwhile, the estate is pushing for the commencement of production and discovery proceedings. We have also been working closely with US Class Counsel to advance and coordinate the bank claims.

Law Firm Claims

We are continuing to prosecute the claims against the law firms in Antigua. It is expected that hearings on the jurisdictional issues will be heard towards the end of this year

HSBC Claims

HSBC agreed to provide disclosure on an agreed list of requests. In our view this issue has not been fully complied with. It has also become clear that we need to examine individuals, a position to which HSBC has yet to agree. Our current tolling agreement extending the time for filing expires on 30 June. Thus, we are of the view that we need to invoke S236 for proper production and examination. We anticipate our request to be contested.

Based on the information we have to date, we suspect that there were deficiencies in procedures by the bank and that certain “red flags” existed. We are working closely with our advisors to develop the case.

Court Hearings recently held

In mid-May, we appeared before the court on numerous estate matters. Below is a summary of the proceedings.

  • The Court approved the proposed sale of certain property at a purchase price in excess of US$7.5 million by Maiden Island Holding Ltd’s, an entity related to SIB.
  • The Court approved SIB’s sale of Pelican Island in Antigua for the sum of US$10M.
  • The Court granted Stanford Development Company’s appeal of a tax determination related to its sale of an aircraft hangar located at the V.C. Bird International Airport, finding that the stamp duty determination was unreasonably high. The court directed the parties to file further valuation evidence addressing certain issues highlighted by the Court in order to assist it in determining the appropriate stamp duty.
  • The Court approved the payment of the fees and disbursements claimed by the JLs and the Estate’s professional advisers for the period between 1 January 2015 – 31 December 2015 and SDC for the period between 1 November 2014 and 31 March 2016.
  • The Estate did not object to the Former Joint Liquidators and Vantis’ application for an extension of time in which to file their defence of SIB’s claim to 17 June 2016. The Court thus granted the application.
  • With respect to the claims against Chadbourne & Parke LLP and Proskauer Rose LLP,  the Court granted SIB’s application to extend time in which to file their written submissions to 21 March 2016 and the defendants’ applications to extend time to 17 May 2016. A case management hearing will be scheduled to take place shortly.
  • With respect to the preference and net winner claims under s. 204, the Court extended the time in which SIB is to serve its claims on the defendants to 17 February 2017.
  • SIB and the Amicus Curiae, as to the preference and net winner claims, were granted permission to fund the reasonable expenses of their appeals of the Court’s judgment from the assets of the Estate.
  • With respect to SIB, SDC and Stanford Trust Company Limited (in Liquidation), the Court entered an order approving a settlement agreement with Kroll Associates, Inc. and Kroll LLC entered into by the US Receiver.