Atlantic Bank Contemplates Libel Suit Against Feinstein

The ensuing drama between Atlantic Bank Limited and businessman Michael Feinstein, following a lawsuit filed against him and Stake Bank Enterprise Limited, is taking an interesting turn.  As we reported on Monday, a letter to Central Bank Governor Kareem Michael, on behalf of Stake Bank, requests that the regulator investigates ABL for, “serial breaches of the Domestic Banks and Financial Institutions Act”.  In that letter, Senior Counsel Godfrey Smith, on behalf of his client calls upon the Central Bank to immediately inquire into these matters which not only are clear breaches of the act but create a substantial risk to depositors of the bank.  The Central Bank is also being asked to call on shareholders of ABL to recapitalize the bank to ensure that depositors’, as well as employees’ pensions funds are safeguarded.  In the wake of that letter, Atlantic Bank has issued a statement of its own in which it acknowledges the existence of the letter written on behalf of Feinstein.  Also, the bank firmly denies allegations regarding the financing of the Port Coral Project and its attorneys are considering a claim for libel based on the harmful statements in the letter.  To the paid political ad that is currently being aired on various media outlets, Atlantic Bank reminds its customers that its fundamentals are strong and supported by a financial group worth twenty-one billion U.S. dollars.  As such, ABL remains the second largest financial institution in Belize, with the largest lending portfolio, funded by the second largest deposit.  So, what does Prime Minister John Briceño make of the evolving fiasco between the bank and its borrower?  Here’s what he had to say.

 

Paul Lopez

“What is your thoughts on what has been transpiring Atlantic Bank and Stake Bank at this time, there seems to be a legal war underway.”

 

Prime Minister John Briceño

“Because it is a legal matter I would rather not comment, because quite likely that will end up in court. So I would rather leave that to the lawyers and the bank and the Central Bank.”

 

Earlier today, the principal owners of Stake Bank ran a notice elsewhere in the media in which it sets out to clarify five points, including the fact that Stake Bank is not yet an operational business but has been put into receivership.  The statement goes on to say, “The owners of SBEL will be filing legal suit against Marlowe Neal and his accomplices for this dubious act.  Marlowe Neal is reminded that as the receiver appointed by the ABL he is to recover $61,595,818.50 and not a penny more and in doing so he is to act in good faith. Any further attempts to act with impunity to undermine the interest of SBEL and its shareholders by Marlowe Neal, etc. will be vehemently challenged in our Courts. The Belize business landscape is riddled with bank imposed receiverships that have destroyed borrowers hard earned assets and their dreams because receivers didn’t act in the best interest of the owners”.