COViSAL #190 - Summary of the Update to Creditors of SIB /Antigua. March 26, 2024.
On March 26, 2024, Joint Liquidator Mark McDonald /Stanford International Bank Limited - in Liquidation ("SIB"), published the Latest Update to Creditors. See the report at the following links:
Link to the original English document:
Link to original Spanish document:
Link to the Spanish translation by COViSAL:
COViSAL Summary:
Payments to Creditors:
- The SIB /Antigua Liquidation has made 3 payments totaling $133,180,958.00 equivalent to 2.6% of the amount admitted in each Claim.
- $117,955,128.00 million was paid through checks and bank transfers.
- $15,225,830.00 million in unclaimed and accumulated funds to date.
- $6 million frozen in Switzerland.
Recovery Actions:
- The lawsuit against Sociètè Gènèrale (Soc Gen) in Switzerland for allegedly $700 million, with a security deposit given to the Court to proceed with the litigation.
- Appeal against a US Court Order allegedly blocking the lawsuit against Soc Gen in Switzerland filed by the Joint Liquidators. A hearing is scheduled for April 30, 2024, at the Fifth Circuit Court of Appeals in the U.S.A.
- After the conclusion of the Ancillary Bankruptcy Process in Switzerland, recoveries of approximately $10 million and additional smaller amounts are expected from the liquidation of related companies in Antigua.
Periodic Distributions:
- Mr. McDonald reports in his update:
- 2.2 "We continue to make regular redistributions to creditors who for a variety of reasons either did not receive or could not bank their cheques."
- 2.3 "Unclaimed and accrued distributions currently total approximately US$15.8 million at the date of this report. "
- The high number of unclaimed distributions suggests communication failures and/or limitations. Therefore, it is necessary for creditors with "unreceived payments" to act immediately.
COViSAL Concerns:
- Lack of details: Details are needed on potential recoveries and a timeline for their execution.
- Delay in distribution: There is concern that $6 million available is being held back until large recoveries are achieved, which could take months or years. Delaying access to these funds could violate the Cross-Border Agreement that the Liquidators signed with US authorities. Creditors need payments now, even if they are small.
- Lack of transparency: A more detailed breakdown of expenses is required, especially since legal fees and expenses represent more than 78% of total expenses.
- Inequality in recoveries:
- Distribution to Creditors: $133,180,958.00 (46.24%)
- Fees and Expenses: $145,568,033.00 (50.54%)
- Timelines: There are no timelines for resolving the land sale or completing the Swiss ancillary bankruptcy.
Recommendation:
1.
Make sure that
your Claim filed with the SIBL Liquidation in Antigua is up to
date:
- Documents: Your identification documents and contact information (mailing address, email, and phone numbers).
- Beneficiary: Replaced in case of change or death of the holder.
- Payments: Verify that you have correctly received the three (3) payments from the Joint Liquidators (Grant Thornton)
2.
Also, verify that
your Claim filed with the U.S. Receiver, Ralph Janvey, in the US has
received nine (9) Distributions from Gilardi & Co. LLC - Claim Agent.
3. If you already have everything up to date, you do not have to do anything now. If your Claim has any problems, please contact me.
Let's move forward with faith and perseverance.
Jaime R. Escalona
On behalf of COViSAL for Restitution, since 2009.
Twitter: @COViSAL
La labor de COViSAL, desde el 2009, es de índole investigativa, informativa y de difusión. NO debe interpretarse como asesoría legal. The nature of the work of COViSAL, since 2009, is research, information, and dissemination. It should NOT be interpreted as legal advice.