TCB Audit Litigation Reports
February 11, 2008
The Third Official Liquidator of Trade and Commerce Bank (In Liquidation) (the “bank”), Christopher Johnson, is pleased to announce that writs have been issued and served on the former auditors of the bank. These parties are Arthur Andersen LLP who were the auditors of the bank for the period March 2, 1988 to December 31, 1999 and Morris Brankin & Co. who were the auditors of the bank for the year ended December 31, 2000. Defences have been filed by both parties which are being currently studied by the lawyers retained by TCB Creditor Recoveries Ltd.
TCB Creditor Recoveries Ltd. is the Cayman Islands special purpose vehicle to which on October 12, 2006 the causes of action against Arthur Andersen LLP and Morris Brankin & Co. were legally assigned, the legal assignment having been approved by the Liquidation Committee and sanctioned by the Grand Court of the Cayman Islands on October 11, 2006.
TCB Creditor Recoveries Ltd. has undertaken to fund the prosecution of the claims against Arthur Andersen LLP and Morris Brankin & Co in the appropriate jurisdiction or jurisdictions by instructing lawyers of its choice. If the claims should be successful, TCB Creditor Recoveries Ltd. will receive one third of “the Proceeds” as defined in the Deed of Legal Assignment and an amount equal to “the Expenses” as defined in the Deed of Legal Assignment or in the event that “the Expenses” exceed US$5,000,000, the amount of US$5,000,000. All remaining proceeds will be paid to the liquidation estate.
Any enquiries as to the conduct of the remainder of the liquidation must be addressed to the Joint Official Liquidators at Kroll (Cayman) Limited.
Spanish Translation
11 de febrero del 2008
El tercer liquidador oficial del Trade and Commerce Bank( en liquidación) ("el banco") Christopher
Johnson, se complace en anunciar que las demandas han
sido emitidas y se ha notificado las mismas a los
anteriores auditores del banco. Los demandados son
Arthur Andersen LLP que fueron los auditores del banco
en el periodo de Marzo 2 de 1988 a Diciembre 31 del
año 1999 y a Morris Brankin & Co., que fueron los
auditores del banco del año que culminó el 31 de
Diciembre de 2000. Las partes han contestado la
demanda y las mismas esta siendo analizadas por los
abogados contratados por TCB Creditor Recoveries Ltd.
TCB Creditor Recoveries Ltd. es un vehiculo destinado
especiamente formado el 12 de Octubre de 2006 para
realizar dichas demandas contra Arthur Andersen LLP y
Morris Brankin & Co. Esta designación ha sido aprobada
por el Comite de Liquidadores y autorizado por el Gran
Tribunal de las Islas Caimán en Octubre 11, 2006.
TCB Creditor Recoveries Ltd. ha asumido el rol de
financiar los procesos judiciales contra Arthur
Andersen LL y Morris Brankin & Co. in la jurisdicción
apropiada o en jurisdicciones a elección de los
abogados designados. Si la demanda resultara exitosa,
TCB Creditors Recoveries Ltd. recibirá un tercio de"lo recuperado" como fue definido en la escritura de
cesión de derechos, y un monto igual a los "gastos"
que excedan los USD 5.000.000, La cantidad de USD
5.000.0000. El resto de lo recuperado será pagado a la
liquidación.
Cualquier información sobre la manera en que se
condujo la liquidación se debe dirigir a los
Liquidadores Oficiales en Kroll( Cayman) Limited
Christopher Dorrien Johnson FCA. CFE
George Town
Grand Cayman
Cayman Islands
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