Statement from EY on Caledonian Bank and Caledonian Securities 

On 25 February, the Grand Court of the Cayman Islands upon the petition of the Cayman Islands Monetary Authority (CIMA) ordered the appointment of Keiran Hutchison and Claire Loebell of EY as Liquidators for Caledonian Bank Ltd. (CBL) and Caledonian Securities Ltd. (CSL). The order does not detract from the Liquidators ability to sell Caledonian’s businesses and assets. Rather, it provides a statutory framework to engage with depositors and stakeholders, to commence a process aimed at having monies returned to them, and to best deal with the affairs of the Bank and its Securities business.

This follows from 12 February 2015 when the Grand Court of the Cayman Islands confirmed that the Liquidation of CBL resolved upon by the shareholders stood and confirmed that the CIMA appointed controllers being Keiran Hutchison and Claire Loebell had the sole power of control over CBL. As is customary in such circumstances, the Liquidators have been undertaking a thorough review of CBL and CSL operations, taking in to account the best interests of all stakeholders – including creditors, deposit holders and employees.

The staff of CBL and CSL will continue to be paid under the terms of their contracts and are assisting the Liquidators with preparations for efforts to sell the CBL and CSL businesses. Employees have been advised that redundancies are likely, and they are free to resign if they should choose to pursue other opportunities. Notwithstanding this the Liquidators would welcome the opportunity to introduce them to a prospective new employer if a buyer for the businesses can be identified.

The appointment of the Liquidators does not extend to other companies within the Caledonian group. The Liquidators are working with the Directors of those other Companies to – where possible – address issues arising as a result of the Liquidation of CBL and CSL.

The Liquidators will continue to report their findings and are in the process of calling meetings of stakeholders. In the meantime, the operation of all services to the customers and clients of CBL and CSL remains suspended.

Related story:

Caledonian joint controllers appointed joint official liquidators for Caledonian entities

Mr. Keiran Hutchison and Ms. Claire Loebell of Ernst & Young, Ltd., who were appointed by the Cayman Islands Monetary Authority (CIMA) as Joint Controllers for Caledonian Bank Ltd. and Caledonian Securities Ltd. on 10 February 2015, have been appointed as the Joint Official Liquidators of both Caledonian entities.

On 16 February 2015, upon receipt of interim reports from the Controllers, the Executive Committee of the Board of Directors of CIMA adopted a resolution to take the necessary action to revoke the licences and forthwith apply to the Grand Court for orders for winding up of the Caledonian entities, pursuant to its powers under the Banks and Trust Companies Law and the Securities Investments Business Law. Following this decision, CIMA filed its Petitions and supporting documents on 17 February 2015 in the Financial Services Division of the Grand Court.

The matter was heard by the Honourable Chief Justice on the 23 of February 2015 and the Orders, which granted the Petitions for winding up both entities, took immediate effect.

The appointment of Mr. Hutchison and Ms. Loebell as Joint Official Liquidators effectively gives them powers to (among other things) “be authorized to act jointly and severally and take such steps as necessary and expedient in the exercise of their powers conferred under the Companies Law for the protection of assets and acts incidental thereto and consider appropriate actions for and on behalf of the entities within and outside of the Cayman Islands.”