The assets of the institution may be distributed to its depositors and creditors.
Investors from around the world who have money tied up in the bank reportedly applauded a decision by the Court of Appeal Tuesday to dismiss an appeal by SSBT, which has insisted that Central Bank Governor Julian Francis acted outside the law when he shut down the bank more than three years ago.
The Court of Appeal, in a unanimous decision, dismissed the appeal of Suisse Security around 2pm Tuesday after one and a half days of hearings.
SSBT attorney Philip Brave Davis, meanwhile, said Wednesday that he was awaiting instructions from his client to determine what the next course of action will be.
Justices of Appeal Maurice Churaman, president of the tribunal, Lorris Ganpatsingh and Emannuel Osadebay heard the appeal.
SSBT’s appeal to the Court of Appeal challenged the judgment of Justice Austen Davis given in a statutory appeal brought by SSBT against the decision of the governor to revoke its bank and trust licence.
Justice Davis rejected SSBT’s appeal “in total” on April 2, 2003 in an oral decision, confirming the Governor’s decision to revoke SSBT’s appeal. He handed down his written ruling on April 25, 2003.
The Court of Appeal on Tuesday ordered SSBT to pay the costs of the Central Bank, both for the Court of Appeal hearings as well as for the statutory appeal brought by SSBT against the decision of the Governor of the Central Bank revoking SSBT’s licence.
The Central Bank of The Bahamas was represented in the Court of Appeal by William Blair QC, Claire Hepburn, and Rochelle Deleveaux. SSBT was represented by Philip Davis and Derek Ryan.
Reinstatement of the Central Bank’s petition could lead to liquidation of SSBT’s assets and the subsequent distribution of proceeds to the bank’s depositors and creditors.
Accountant Raymond Winder was appointed the provisional liquidator of Suisse Security’s assets in April 2001. Since then, he has faced impatient international depositors and creditors of SSBT who had agitated for the liquidation process to speed up.
The parties are reportedly seeking to recover millions of dollars invested in the bank.
While Mr. Winder has been empowered to take possession of, collect, and protect the assets of the bank he cannot distribute any of the funds until further ordered.
In an earlier interview, a source close to the matter told the Bahama Journal that the process is ﾓvery frustratingﾒ for the former clients.
SSBT liquidators and creditors had been pushing for the courts to order the bank to go into full liquidation, a process that could begin with the successful reinstatement of the regulatory agency’s petition.
Darrin Culmer, The Bahama Journal
