fp Turks and Caicos

Justice Richard Williams has directed the depositors and shareholders of TCI Bank to vote on a rescue plan offered by two Eastern Caribbean banks that would return all money to most bank customers.

However, Financial Services Commission (FSC) is now saying St. Kitts Nevis Anguilla National Bank Ltd. and National Bank of Dominica Ltd. must deposit $18.5 million before it will approve the plan. The plan on which depositors and shareholders will vote only offers $12.5 million, 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 plan on the table would allow all deposit accounts to have access to up to $50,000 during the first 90 days after the bank reopens. The banks say that covers approximately 97 percent of TCI Bank’s depositors.

All other depositors will be required to leave their funds in the bank for up to five years, earning an interest rate of 1.75 percent per annum from the day the new bank opens its doors.

The Financial Services Commission closed the bank in April and called in provisional liquidators after a number of large withdrawals were made from the bank that was already overburdened with non-performing loans. It was the only indigenous bank in the Turks and Caicos Islands.

The Eastern Caribbean banks were one of three groups offering rescue plans. If the rescue is not approved, the bank would go into full liquidation, and depositors would get back only pennies on the dollar over several years, liquidators have said.

Click HERE to read the "Scheme of Arrangement" on which creditors and shareholders will vote.

Click HERE to read the notice of the meetings, which is included below:

1. In Grand Turk on Tuesday the 31 day of August, 2010 at 5:30 pm at Dillion Hall (aka Church Hall), in respect of Creditors with bank accounts at the Company’s branch in Grand Turk;
2. In North Caicos, on Wednesday 1 September 2010 at 5:30 pm at Horse Stable Beach pavilion, in respect of Creditors with bank accounts at the Company’s branch in North Caicos;
3. In Providenciales, on Thursday the 2nd September 2010 at 5:30 pm at Tropicana Club, The Bight, Providenciales, in respect of Creditors with bank accounts at the Company’s branches in Providenciales, and with

the Shareholders of the Company immediately after the above meetings, at the meeting that is most convenient to each shareholder at which place and respective times all the aforesaid Creditors, as defined, and Shareholders are requested to attend.

Any person entitled to attend the said Meetings can obtain copies of the said Scheme of Arrangement, forms of Proxy and copies of the Statement required to be furnished pursuant to Section 84 (2) of the above-mentioned Ordinance and Court Order at the office of the said Company situated at Butterfield Square, Town Centre, Providenciales, off the web site of the Company (in liquidation) at www.tcibpliquidation.com, or at the office of the under-mentioned Attorneys at the address mentioned below during usual business hours on any day (other than a Saturday or Sunday) prior to the day appointed for the said Meetings.

The said Creditors and Shareholders may vote in person at such of the said Meetings as they are entitled to attend or they may appoint another person whether a member of the Company or not as their proxy to attend and vote in their stead.

It is requested that the form appointing proxies be lodged with the Secretary at the registered office of the Company situated at the Beatrice Butterfield Building, Town Centre, Providenciales not less than 48 hours before the time appointed for the said meetings, but if forms are not so lodged they may be handed to the Chairman at the Meeting at which they are to be used ten minutes before the scheduled time for such meeting.

In the case of joint holders of Shares the vote of the senior who tenders a vote whether in person or by proxy will be accepted to the exclusion of the votes of the other joint holders, and for this purpose seniority will be determined by the order in which the names stand in the Register of Members.

By the said Order the Court has appointed Anthony S. Kikivarakas or failing him Mark Munnings, the Provisional Liquidators of the Company, and Norman Hamilton or failing him Andrew Newlands, directors of the Company, to act as Co-Chairmen of each of the said Meetings and has directed the Co-Chairmen to report the results thereof to the Court.

The said Scheme of Arrangement will be subject to the subsequent approval of the Court.