 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
|
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
|
 |
|
|
 |
 |
|
|
|
|
| |
Regional News>Grenada gov't files petition to reorganise bankGrenada (CMC) |
 |
The Grenada govern-ment has petitioned the courts for permission to implement a turnaround plan for one of its local banks, having taken control of the cash-strapped financial institution earlier this year.
Grenada plans to dispose of the 20-year-old bank Capital Bank International Limited, with early indications that it might be repackaged and sold.
A statement issued by the ministry of finance said the government was awaiting a court date for the hearing of the petition.
But the statement also said the government was "working to protect the interest of depositors of the bank" and that Finance Minister Dr Keith Mitchell, who is also prime minister, has received expressions of interest from potential investors hoping to acquire various aspects of Capital Bank.
No Firm Offers
"The potential investors have not yet had the opportunity to complete their due diligence, and as yet have not been able to provide the minister with firm offers or letters of intent," the statement said.
Earlier this year, the Government shut down the bank after a series of complaints from customers over its failure to honour requests for withdrawals.
The government subsequently put the bank into receivership.
All 12 branches of Capital Bank were shut down. A government notice placed on their doors states that the decision is consistent with the Banking Act and Companies Act of Grenada.
Key Information Released
Mitchell has since got permission from the court to have key information on the bank released.
"The court subsequently ordered that the receiver's report filed under seal with the court on February 25, 2008 be released to the minister, Eastern Caribbean Central Bank and Mr Finton De Bourg," said the statement.
"It also gave permission for the report to be given to prospective investors."
De Bourg was the bank's chairman and managing director.
The government also intends to release "the general findings" of the receiver's report to Parliament and the general public, but is awaiting permission.
"The court has thus far not acceded to this request," the statement said.
- CMC