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| Last Updated: 3rd January, 2012 | ||
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3rd January 2012 - Safe Harbor Bank Ltd : Recent Developments: Update Number 9 As Liquidator I appreciate that it might seem that little progress has been made in recent months in regard to the Safe Harbor Bank Liquidation as no updates have been appearing on the website. The opposite is in fact the case and a great deal of progress is happening behind the scenes, thanks to the continued invaluable help of our team, including IFSA. Unfortunately the process of establishing and collecting debts due to the Bank in order to finalize its assets and liabilities involves a lengthy litigation process which has to be dealt with mainly in the US Courts and this is ongoing at the present time. Whilst as Liquidator I would like to keep all depositors and claimants fully informed I am sure that you will appreciate that as in any litigation process the proceedings have to be confidential up until a certain point in time. We are not yet quite at that point in regard to the progress of the Safe Harbor Bank proceedings and I am not therefore, at this stage, able to make public any further detailed information.
It is hoped that in
the next few weeks matters will progress to the fixing of hearing
dates etc at which time we may be able to release more information
but for now please be rest assured that things are not standing
still and that, in this case, no news is still good news as far as
depositors are concerned because it means that the whole legal and
liquidation team are working hard behind the scenes to take matters
forward.
18th July 2011 - Safe Harbor Bank Ltd :
Recent Developments: Update
Number 8
In
“Update Number 7” we reported that a final hearing on recognition
under Chapter 15 was re-scheduled for Friday, 15 July 2011. Our US
counsel today reports: “You now have not only the statutory
protections of the United States Bankruptcy Code, including an
automatic stay against any actions adverse to you, the bank or
property of the bank, but you also have the statutory right to
invoke the jurisdiction of the United States courts to recover
property of the bank”. Please
refer to “Safe Harbor Recognition Order entered 7-18-2011” in the
sidebar for further information. We consider this to be very good
news for the interests of the various creditors/depositors and are
grateful to US counsel. As mentioned in previous updates creditors, including bank depositors, have been requested to file their claims. The bar-date for claims was 22 June, 2011. We are grateful to those claimants who responded. As a consequence of the above two events, the Liquidator Team is now consulting with counsel and reviewing its options in order to maximize the interests of the various stakeholders. The liquidation proceeds smoothly thanks to the continued invaluable help of our team, including IFSA. Please check back from time to time for updates.
Graham Crabtree
In
“Update Number 6” we reported that a final hearing on recognition
under Chapter 15 was re-scheduled for Friday, 3 June 2011. Our US
counsel now advises that due to unexpected construction work at the
courthouse, the hearing has been re-scheduled for Friday, 15 July
2011. Please refer to the “Notice of Rescheduled Hearing” in the
sidebar for further information. As mentioned in “Update Number 5” and “Update Number 6” creditors, including bank depositors, have been requested to file their claims. The Liquidator has sent all claims documents to depositors care of their service provider / intermediary / registered office/agent or, if no record of such an entity exists, to them directly. In most cases these have been sent by e-mail; where e-mails have bounced back, the claims documents have been hand-delivered. If any claimant has not received such a document, please contact the Liquidator immediately at the addresses given elsewhere on this page. We are grateful to those claimants who have already responded. The liquidation proceeds smoothly thanks to the continued invaluable help of our team, including IFSA. Please check back from time to time for updates.
Graham Crabtree
Legal Action “In connection with the final hearing on recognition before the U.S. Bankruptcy Court, District of Massachusetts (the "Bankruptcy Court"), which is scheduled for June 3, 2011 at 9:30 a.m. (EST) in Barnstable Town Hall, 367 Main Street, Hyannis, Massachusetts, copies of following are available for review at the side panel: (i) Notice of Filing and Hearing on Petition Under Chapter 15 of the United States Bankruptcy Code (the "Notice"); (ii) Official Form Petition (iii) Verified Petition For Recognition of Foreign Insolvency Proceeding and Application For Related Provisional Relief Pursuant to Sections 1504, 1507, 1509, 1515, 1517, 1520 and 1521 of the Bankruptcy Code; (iv) Declaration of Graham Crabtree; (v) Declaration of Joseph A. Delves; (vi) Declaration of John J. Monaghan; and (vii) Order Granting Provisional Relief Pending Hearing on Petition for Recognition as a Foreign Main Proceeding Pursuant to 11 U.S.C. Sections 105(a) and 1519. As set forth in greater detail in the Notice, the deadline for filing an objection to the petition with the Bankruptcy Court is June 1, 2011 at 4:30 p.m. (EST).” Claims As mentioned in “Update Number 5” creditors, including bank depositors, are now requested to file their claims. The Liquidator has sent all claims documents to depositors care of their service provider / intermediary / registered office/agent or, if no record of such an entity exists, to them directly. In most cases these have been sent by e-mail; where e-mails have bounced back, the claims documents have been hand-delivered. If any claimant has not received such a document, please contact the Liquidator immediately at the addresses given elsewhere on this page. The liquidation proceeds smoothly thanks to the continued invaluable help of our team, including IFSA. Please check back from time to time for updates.
Graham Crabtree Recent Legal Action In addition to the ongoing duties and responsibilities inherent on the liquidation of the bank and preparing and submitting the report to the Eastern Caribbean Supreme Court In The High Court of Justice in St. Vincent and the Grenadines, as required in the Court Order entered on 17 January 2011, the Liquidator and the team have been busy researching and preparing the bank’s claims against certain assets and investments shown in the bank’s books. On 29 March 2011, we were informed by the law firm Salter McGowan Sylvia & Leonard, Inc. that there would be a hearing in Massachusetts (Barnstable Superior Court) on Friday, 22 April 2011 (Good Friday). The hearing was captioned “Spinal Technology, Inc, Spinal Group Inc, James Tierney Plaintiffs vs. Graham Crabtree, Liquidator of Safe Harbor Bank, Thomas D. Mangione, Ariane St. Claire, Defendants”. The law firm Salter McGowan Sylvia & Leonard, Inc. acted for the Plaintiffs. The complaint alleged breach of contract, breach of fiduciary duty, fraudulent misrepresentation, violation of M.G.L. ch 93A, interference with contractual relations, unjust enrichment, declaratory judgment – offset and equitable relief. In April we consulted and worked with counsel, extensively. A major element of the opposition to the injunctive relief sought was the failure to effect service properly. Our US counsel, Holland & Knight, filed a Chapter 15 application in the United States Bankruptcy Court. A Chapter 15 is a proceeding in the United States Bankruptcy Court seeking official recognition of (in this case) the winding up proceeding in St. Vincent and the Grenadines as binding in the United States and of the Liquidator’s right and ability to take action in United States’ courts to carry out duties as Liquidator. It imposes an injunction on the sort of action outlined above and it avoids the problem of dueling jurisdictions - where the Courts of St. Vincent and the Grenadines are rushing to deal with our action against certain entities before the Courts of Massachusetts enter a judgment, and the Courts of Massachusetts are rushing to enter judgment before the Courts of St. Vincent and the Grenadines do so, and it constitutes a directive that all U.S. courts provide comity and recognition to the actions of the Eastern Caribbean Supreme Court in St. Vincent and the Grenadines. A Chapter 15 comes with certain protections - including that all actions against the Liquidator or the assets of the bank are stayed (nobody can sue the Liquidator or seize bank assets without leave of court). However, the filing of a Chapter 15 does not immediately and automatically give rise to these protections. Rather, to obtain immediate protection, one must seek provisional relief. When Holland & Knight filed the pleadings on 21 April, they asked the Court for a hearing the following day, before noon, for the purpose of considering our request for provisional relief. The Court agreed to hear the application on the morning of the 22nd. John Monaghan of Holland & Knight appeared on our behalf. Mr. Harris K. Weiner of the law firm Salter McGowan Sylvia & Leonard, Inc. appeared for Spinal Technologies. I am pleased to report that the United States Bankruptcy Court granted the provisional relief we sought. That provisional relief included entry of a stay precluding any party in the United States from bringing an action or otherwise pursuing litigation. The entry of that provisional relief prevented the hearing in the Massachusetts State Court (Barnstable Superior Court) from going forward.
A final hearing on recognition under Chapter 15 is scheduled for
Friday, 13 May 2011. Creditors, including bank depositors, are now requested to file their claims. In addition to this posting on the website and the insertion of a notice in the “Searchlight” newspaper, the Liquidator will be sending the documents, recently listed in the side panel, to depositors care of their service provider / intermediary / registered office/agent or, if no record of such an entity exists, to them directly The liquidation proceeds smoothly thanks to the continued invaluable help of our team, including IFSA. Please check back from time to time for updates.
Graham Crabtree In past “Recent Developments” we have explained that the “Petition referred to in the Court Order” was re-scheduled to 7 April 2011. We are pleased to report that this took place. A copy of the Order of Court can be found in the link in the side panel. The Liquidation proceeds smoothly thanks to the continued invaluable help of our team, including IFSA. Please check back from time to time for updates, including filing notices of claims.
Graham Crabtree In past “Recent Developments” we have explained that the “Petition referred to in the Court Order” was re-scheduled to 17 March 2011. Please be advised that the Petition has now been re-scheduled to 7 April 2011. A copy of the document can be found in the link in the side panel. The Liquidation proceeds smoothly thanks to the continued invaluable help of IFSA and others. Please check back from time to time for updates.
Graham Crabtree In the “Recent Developments: Update Number 1, Posted on 3 February 2011” it was stated that the “Petition referred to in the Court Order [presented by the Honourable Attorney General of St. Vincent and the Grenadines to St. Vincent and the Grenadines’ High Court of Justice on 10 January 2011] is scheduled to be heard on 24 February, 2011.” On 16 February 2011 the Court granted a Petition for the matter to be heard on 17 March 2011, rather than 24 February 2011. A copy of the Petition can be found in the link in the side panel. The Liquidation is proceeding smoothly thanks to the continued invaluable help of IFSA. Please check back from time to time for updates.
Graham Crabtree On 20 October 2010, the International Financial Services Authority of St. Vincent and the Grenadines (“IFSA”) appointed Mr. Floyd A. Patterson, a practicing partner with the firm BDO Eastern Caribbean, as Controller of the Bank, pursuant to section 21(e) of the International Banks Act, 2004. In order to assist in the execution of his duties as Controller, Mr. Patterson retained staff from BDO and legal counsel. A recommendation of the Controller was that the Bank be placed into Liquidation. The Controllership of the Bank was revoked on January 6th 2011 and the IFSA took possession of the Bank premises and notified the employees that their services were suspended, pending the appointment of a Liquidator. On 10 January 2011, a Petition for the winding up of the Bank was presented by the Honourable Attorney General of St. Vincent and the Grenadines to St. Vincent and the Grenadines’ High Court of Justice pursuant to section 21(5)(d) of the said International Banks Act. Also in the application of the Attorney General and consequent thereto, the High Court appointed Mr. Graham Crabtree as Provisional Liquidator of the Bank. The Court Order, dated 15 January 2011 and entered on 17 January 2011, appointing the Provisional Liquidator can be viewed on the "Links" section of this page. The IFSA previously posted an update on its website www.svgifsa.com under News and Events. The Petition referred to in the Court Order is scheduled to be heard on 24 February, 2011. Mr. Crabtree has appointed Mr. David Sargeant as Representative for any time that he is physically unable to be present in St. Vincent and the Grenadines. The initial steps and processes of the Liquidation were taken up with necessary procedural and logistical matters as well as meetings (in person and by phone), the collection of information and discussing the findings with legal counsel. Among other matters:
The Liquidator and Representative are pleased to report that IFSA has been of invaluable help and has worked along with them to ensure the smooth progress of the liquidation. Please check back from time to time for updates.
Graham Crabtree |
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