GEORGE TOWN, Cayman Islands - Liquidators of Bank of Credit and Commerce International (Overseas) said they had put on hold the proposed settlement of creditors' claims in the wake of a Luxembourg court order earlier this week.
The Luxembourg court imposed a delay on payments to depositors of the failed Bank of Credit and Commerce International, which was based in that country.
Courts in Britain and in the Cayman Islands, where BCCI (Overseas) was based, had previously approved the settlement, and majority shareholders from Abu Dhabi had agreed to contribute to the repayment pool. The agreement would have resulted in payments of some 30 to 40 cents on the dollar.
A Luxembourg judge said the plan needed more explicit approval from creditors.
In the Caymans, liquidator Ian Wight said he was concerned that the ruling might give each creditor a vote in the settlement, and that the Abu Dhabi government's offer, which came with a Nov. 30 deadline, might not remain open long enough to complete the settlement.