LONDON -- The English liquidator of the collapsed Bank of Credit and Commerce International said on Wednesday he expected English creditors soon to agree to a document detailing a compensation agreement.
"The document will be ready within the next six to eight weeks," said Christopher Morris, a partner at accounting firm Touche Ross & Co. "That's a reasonable estimate."
The deal, reached between BCCI's major shareholder Abu Dhabi and Touche Ross, calls for the distribution of some $1.8 billion to creditors in a shorter time span than was envisaged in an earlier plan which was blocked by a Luxembourg court.
Once the document has been agreed on between the parties, it will be submitted for court approval in London, Luxembourg, and Grand Cayman. It must be approved in all three places before the deal can go ahead.
More Money Sought
Some creditors are trying to block the plan because they are prepared to wait even longer in the hope of getting more of their money back.
Mr. Morris was speaking at a press briefing to accompany the publication of the liquidators' annual statement to British authorities on progress in the liquidation of BCCI assets. He said there were still points at issue between the liquidator and creditor committee but wouldn't say what they were.
Mr. Morris said the English liquidation has so far recovered $882.4 million up to Jan. 15, 1994 out of a total $3.223 billion recorded in BCCI's books on July 5, 1991, the date BCCI was closed down revealing the biggest fraud in banking history.
Touche Ross estimated that future realizations would amount to some $344 million out of total unrealized assets of $2.437 billion. "That just shows you the quality of BCCI's loan book," Mr. Morris said.
The figure for future realizations does not include money that could be raised from the agreement with Abu Dhabi or from the extensive litigation still taking place.
This includes claims against the Bank of England which, Touche Ross says in the report, are not proceeding because the Bank has been granted a stay in presenting a defense.