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Jul 11, 2019

A.I.B.L. and F.T.C. Settlement Soon to Be Sealed

After negotiations, A.I.B.L. and the F.T.C. were able to come to an agreement which resulted in the F.T.C. filing an application to stay proceedings against the bank.  An appointed liquidator, Julian Murillo, was at the headtable of the press conference along with the PM.  He told the media that subsequent to the commencement of the liquidation process, he and a legal team proceeded to seek U.S. Chapter fifteen bankruptcy protection in the Florida Bankruptcy Court. This would have established the recognition of the Belize liquidation process under U.S. law and protect estate flows through the U.S. banking system. The F.T.C., however, opposed this recognition. According to Murillo, the interest of the depositors and creditors were being looked after. 

 

Julian Murillo

Julian Murillo, Liquidator, Atlantic International Bank Limited

“Though there has not been any court judgment or determination against A.I.B.L. nor has the bank admitted to any wrongdoing, a reasonable settlement of the F.T.C. allegations, in my judgment, is in the interest of A.I.B.L.’s depositors and creditors and the liquidation process for the following reasons: a) First, the ability to dispose of the bank’s loan portfolio, which represents seventy percent of A.I.B.L. assets, is a material factor for prospective purchasers. b) Second, I, on behalf of depositors and creditors, must be concerned about the financial, human resource and time costs attendant to an extended legal battle with the F.T.C. in U.S. courts. At the point of liquidation, A.I.B.L. management had already spent almost four million dollars on legal costs. Subsequent to liquidation, these costs have continued to rise and now accrue directly to depositors and creditors. c) Third, as A.I.B.L. was an international bank, loan repayments are in U.S. dollars and must be processed through U.S. correspondent banks. The F.T.C. legal proceedings against A.I.B.L. have impaired loan repayment flows which, without an urgent settlement, would severely deteriorate the quality of the loan portfolio and negatively impact its value.”


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