It has been 13 years and $7.9m was paid out in liquidator and agent fees.
In February 2019, I wrote an article about TCI Bank in Liquidation. At that time, over $13 million was paid out in disbursements including $6million in liquidation and agent fees. It is now 2023 and the liquidation of TCI Bank continues to take place. I think it is time the FSC, the Government and the Courts put an end to this liquidation.
I know that this is a complex situation, but this is one of the longest liquidation cases in the Turks and Caicos Islands. I am very concerned that no one seems to be monitoring the liquidation.
The FSC was quick to liquidate the TCI Bank after only being in operation for less than 4 ½ years but no one as far as I know is questioning the liquidation of the TCI Bank which has been going on now for the past thirteen (13) years.
TCI Bank commenced services in Turks and Caicos in December 2005 and due to cash flow issues, the FSC made an application in April 2010 to liquate TCI Bank and two individuals were appointed as the liquidators and eventually one was removed.
The bank apparently experienced cash flow issues due to their aggressive lending policy and some of these loans were nonperforming in that the customers were not able to pay the loans thus causing the bank to experience cash flow issues.
To date, the bank has made three dividend distributions for a total of 55cents on a dollar to the creditors. This means if you had money in the bank, you would have received 55% of what you had in the bank.
The first dividend of 20cents was approved on June 13th, 2012. A second dividend of 20cents was approved in April 2015. A third dividend of 15 cents was approved resulting in a total dividend of 55cents.
According to the TCI Bank in liquidation, in May 2023, the liquidator advised the court of a fourth recommended dividend payment of 7cents. This is now September 2023, and I have not heard from anyone who has yet to receive a fourth dividend.
Disbursements paid out as of December 31, 2022
The latest report issued by the liquidator is for the six months ended December 31st, 2022. No reports have been issued for the six months ended June 30th, 2023.
Based on all the reports from 2010 to 2022, the total disbursements paid out were $17,516,571. Of that amount, $7,946,664 were recorded as liquidator and agents’ fees. It seems to me that the liquidator is the only one benefiting from this arrangement. Do you know that $7.9million could have been used towards dividend payments? The longer TCI Bank in liquidation remains, the more money that will be used on liquidator and agents’ fees and the less cash that will be available to distribute in dividends to the creditors.
Ending cash balance as December 31st, 2022.
Based on December 31st, 2022, report, the cash balance is $8,674,832. There is $1,018,398 in unclaimed balances from 1,570 unsecured depositors who have not submitted claims.
I think it is time for a review of the liquidation as thirteen years is too loan. I know some of the loans are perhaps uncollectible, but an effort must be made to either sell those loans to another financial institution or have an auction to sell off the assets.
If all the above efforts failed, As I mentioned in 2019 article, maybe we also need to consider changing the liquidator. Finally, with the millions of dollars already disbursed, perhaps we should cut our losses short and write off the outstanding loans.
I am so discouraged how things are handled in this country. The TCI Bank in liquation does not appear to be a major concern for anyone. How is that we allowed this liquidation to take so long?
I think the creditors need to come together and demand something to done with TCI Bank in liquidation, otherwise this may process may gone on for another thirteen years or more.