Shareholders of TCI Bank ordered to vote on rescue plan
By Jason Richards
Justice Richard Williams of the Turks and Caicos Islands has directed the depositors and shareholders of TCI Bank to vote on a rescue plan offered by a consortium of Caribbean banks (ECIC Holdings Ltd ) headed by Dominican Milton Lawrence.
Milton Lawrence CEO of ECIC Holdings
However, the Financial Services Commission (FSC) is now saying that the two key banks involved the St. Kitts Nevis Anguilla National Bank Ltd. and National Bank of Dominica Ltd. must deposit $18.5 million before it will approve the plan.
In July, ECIC Holdings offered to invest up to $30.5m in new money towards getting the collapsed institution back on its feet, which will enable the country’s 4,500 account holders to access all funds up to $50,000 instantly. However, the plan only offered $12.5 million upfront, but it allows for the plan to be modified.
If depositors and shareholders approve, the plan still must be approved by the Eastern Caribbean bank's boards of directors and central bank, as well as the FSC.
The TCI bank was closed by the Financial Services Commission in April and called in provisional liquidators after a steep rise in non-performing loans.
The ECIC Holdings bid for the failed bank is one of three offers that have been made thus far for the bank. If the plan is not approved, the bank would go into full liquidation, and depositors would get back only pennies on the dollar over several years.
ECIC holdings is a private consortium of 10 indigenous East Caribbean banks. They include Grenada Co-operative Bank, First National Bank St Lucia, National Bank of Dominica, ABI Bank, Caribbean Union Bank, St Kitts Nevis Anguilla National Bank, Bank of Nevis, National Bank of Anguilla, Caribbean Commercial Bank (Anguilla) and TCI Bank. The firm’s headquarters are in Basseterre, St Kitts.
