FSRC Confirms AOB in Receivership

Details

Banking

Friday, 13 April 2012 02:30

By caribarena news

Antigua St John's - The Financial Services Regulatory Commission has confirmed that Antigua Overseas Bank (AOB) is in receivership. FSRC Supervisor of Banking Paul Ashe acknowledged this on Thursday.

The Commission said the move, in accordance with Section 287 of the International Business Corporation Act, sees Charles Walwyn and Kathy David appointed as joint receiver managers of Antigua Overseas Bank Ltd.

The joint receiver managers assumed full control of the bank from Wednesday April 11.

Caribarena.com asked Ashe about reports of the temporary appointment of former ABIB board member Clarvis Joseph by Sir Eustace Francis .

He neither confirmed nor denied this, but said the appointment of the receivers rendered any board positions redundant.

“Once the intervention takes place, all the positions become irrelevant,” Ashe said.

Sir Eustace is reportedly on vacation, and had appointed Joseph to hold the fort in his absence.

The FSRC said over the next three months, the joint receivers would be working with the AOB management team and other stakeholders to “chart the way forward” for the bank.

This future could involve re-capitalisation, re-organisation, or other options.

“A full report will be submitted to the Commission within 90 days, at which time more information may be shared with stakeholders," the FSRC said. "The Commission looks forward to the co-operation of employees and customers during this period, as all efforts are made to re-organise the bank."

Section 287 of the Principal Act comes into effect when “the appropriate official is of the opinion that the realizable value of the corporation’s assets is less than the aggregate of its liabilities and capital accounts or the corporation’s financial condition suggests that it will shortly be in that circumstance.”

Ashe said he could not give any more direct information on the subject, but confirmed that Section 287 was employed.

According to the section, receivers can be appointed if the corporation is deemed to be carrying on business in a manner “detrimental to the public interest, the interest of its depositors or shareholders or the beneficiary of any trust, or Insurance Corporation or other creditors.”

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