Horizon Bank International Limited

Liquidator Information

Page last updated: November 27, 2012

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.


Status of the File as of November 23, 2012

In the final four paragraphs of the Liquidator’s October 18, 2010 website update, it was noted that a lone purported creditor’s appeal of the rejection of his proof of debt remained before the Courts for determination, and that the issuance of a final distribution to creditors was delayed on the basis of this ongoing litigation.

On July 31, 2012 the Liquidator applied to the High Court for an Order seeking security for costs against this purported creditor in relation to his appeal.

The Honourable Madam Justice Gertel Thom ordered the purported creditor to pay the sum of EC$15,000 as security for costs, within six weeks of the date of the Order, with a resulting stay of proceedings until the sum was paid. The Order provided that if the security for costs was not posted, the purported creditor’s appeal would be dismissed.

The sum of EC$15,000 was subsequently posted, and the Court is expected to issue directions with respect to the hearing of the appeal in the coming weeks.

It is anticipated that the merits of this appeal will be heard by the High Court in early 2013.

In the Spring of 2012, the Liquidator also applied to the Court to strike a Notice of Action filed by a former HBI Controller, which pertained to pre-Liquidation era costs allegedly incurred by this claimant while serving in this role. The Liquidator takes the position that the former HBI Controller’s claim was at all times and remains an ordinary provable claim in the Liquidation, and had previously admitted a Proof of Debt filed submitted by this individual as a proven unsecured claim. The Liquidator’s decision in this regard was not appealed by the creditor, and a dividend cheque was issued and cashed.

The Liquidator therefore moved to strike the creditor’s legal action, which the Liquidator argues improperly purports to operate outside of the ongoing liquidation process, and is barred by res judicata, estoppel and on other legal and procedural grounds.

The High Court recently heard the Liquidator’s Application and a decision is pending.


Status of the file as of October 18, 2010:

An update on various matters relating to the Liquidation of the Bank:
 
18 KB View update, dated October 18, 2010

Status of the file as of May 6, 2010

The Liquidator has coordinated a settlement of the outstanding litigation the Estate of Horizon Bank had been engaged with involving the proprietary claims of Walsh and Taal which had been advanced in the Bermuda Courts, and had been further appealed by the Liquidator to the Judicial Committee of the Privy Council. The terms of settlement are confidential, however the Liquidator expects as a result of this settlement that the general body of Horizon Bank’s creditors will see dividends which might not have been available but for the compromise of this litigation on the eve of the Privy Council appeal hearing date. Further details of this settlement will be the subject of reports to the Court in St. Vincent, and explanation as to the ramifications it will have for the creditors of Horizon Bank shall follow in further updates to be posted on this website.


Status of the file as of January 12, 2010

As discussed in the last status update (available below), the Liquidator has commenced the process of bringing to the Privy Council in the UK an appeal of the March 2009 decision by the Bermuda Court of Appeal concering ongoing litigation between the HBI estate and Mssrs. Walsh and Taal. Dates for the Privy Council hearing on the appeal have been set for April 14-15, 2010. A further update will be posted here further information becomes available.


Status of the File as of April 17, 2009

An update on various matters relating to the Liquidation of the Bank:
18 KB View update, dated April 17, 2009
[July 4, 2008]
An update on various matters relating to the Liquidation of the Bank:
18 KB View update, dated July 4, 2008
[Mar 26, 2008]
An update on various matters relating to the Liquidation of the Bank:
18 KB View update, dated March 26, 2008
[Sep 20, 2007]
An update on various matters relating to the Liquidation of the Bank:
18 KB View update, dated September 20, 2007
[Apr 10, 2007]
An update on various matters relating to the Liquidation of the Bank:
18 KB View update, dated April 10, 2007
[Oct 26, 2006]
Updates on two matters relating to the Liquidation estate.

Update on Creation of Liquidator's Committee of Inspectors:
18 KB View update, dated October 26, 2006

Update on Status of Bermuda Proprietary Claim:
18 KB View update, dated October 26, 2006 Without Appendices (4 pages, 59 KB)
18 KB View update, dated October 26, 2006 With Appendices (102 pages, 3.07 MB)
[Apr 6, 2006]
Despite approval by the Court in St. Vincent for the Liquidator to move toward an interim distribution, recovery of funds for the estate of the Bank continue to be impeded by the ongoing litigation in Bermuda. This litigation is with respect to the Bank's most significant asset (its accounts at Bermuda Commercial Bank Limited ("BCB")) which remains frozen by order of the Court. This action was commenced prior to the Liquidation, and the ancillary proceeding taken out by the Liquidator in Bermuda.

The plaintiffs in the Bermuda litigation claim entitlement to all funds held in the Bank's accounts at BCB. The Court in its previous ruling did not give effect to the consequence of the Liquidation in St Vincent. Also it became clear that for the Liquidation to have standing in the Bermuda litigation an ancillary proceeding in Bermuda appointing Liquidators was required. This has been accomplished. However it was still not clear when the Bermuda litigation would advance to its natural conclusion.

An initial effort by the Liquidator to see the matter settled did not meet with a response, and subsequent claims received in the Liquidation also asserting proprietary rights have added an additional layer of complexity, as has the potential for the need to resist or litigate claims in other jurisdictions, over essentially the same issues put before the Court in Bermuda. One of these claims, filed on behalf of victims of an allegedly fraudulent scheme which used Horizon and three other banks as conduits for the allegedly stolen money, is itself complex and may take significant time to resolve in each of, the legal standing to make the claim, its ranking given they claim a proprietary interest, and its value. Therefore even if funds are recovered in the short term there are other claims whose priority and value need to be resolved before a distribution can be made.

An application to reduce the amount of funds presently frozen in Bermuda is being prepared, and is expected to be heard by the Supreme Court of Bermuda during the same scheduled hearing dates noted below, which is the first opportunity. In any event, trial dates and directions will be sought in relation to the Bermuda litigation.

The present de facto plaintiffs are making application on April 26 and 27, 2006 to settle the terms of the early interlocutory Decision of the Bermuda Court, which should if nothing else define the manner in which the Court in Bermuda will deal with the matter and whether or not it will be possible to confine the issues for determination to Bermuda.
[Oct 13, 2005]
The Liquidator's First Report to the High Court of Justice of St. Vincent and the Grenadines was filed on October 6, 2005. A copy of the report is posted below.
[Sep 2, 2005]
The following is an update, by jurisdiction, of the recent activities of the Liquidator.

Bermuda
The Liquidator is in the process of securing dates for a hearing in the Supreme Court of Bermuda respecting the permanent stay of the Bermuda litigation between Bermuda Commercial Bank Limited and HBI et al. It is anticipated that the Court will be able to hear parties in relation to this issue in October 2005 at the earliest.

On the same date the aforesaid hearing takes place, the Liquidator will also file an application in Bermuda in relation to the February 7, 2005 Decision of Kawaley J. in which funds in an account maintained by HBI with Bermuda Commercial Bank Limited the amount of $5,631,439.84 were frozen. Specifically, the Liquidator will be applying to introduce new evidence suggesting the Court's conclusion as to the amount of funds subject to an interim freeze order was incorrect, leading to the improper freezing of some $1,208,576.41. The Liquidator will request that the Supreme Court of Bermuda vary its previous interim freezing Order and release to the Liquidator the aforementioned balance, for the benefit of HBI's estate creditors.

Ontario and Turks & Caicos Islands
On July 24, 2005, the High Court of Justice in Saint Vincent and the Grenadines issued letters seeking the judicial assistance of the Courts in Ontario Canada, the Turks & Caicos Islands and Bermuda. The Liquidator is preparing to take steps in each of these jurisdictions to see to the recognition of his powers pursuant to the Winding-Up Order, as this recognition may be required for purposes of conducting examinations and tracing and recovering assets and property of HBI, wherever found.

Bahamas
The Liquidator continues to gather information, books, records and property of HBI in the Bahamas pursuant to the Order of the Supreme Court of the Bahamas granted on April 25, 2005 by which the Liquidator's powers under the Winding-Up Order were officially recognized in that jurisdiction. Determinations are being made in relation to the conducting of examinations of HBI's officers, directors and/or directing minds who presently reside in the Bahamas, in the hope that information gathered will assist in the realization of additional assets and property.
[Jun 14, 2005]
On June 6, 2005, the High Court of Justice of St. Vincent and the Grenadines ordered the Winding Up of Horizon Bank International Limited and appointed Marcus A. Wide, as Liquidator of the Bank. A copy of the order is available below.

The Liquidator is now receiving Proofs of Debt, the prescribed form is available below.

On June 9, 2005 a temporary stay of proceedings was ordered by the Supreme Court of Bermuda, Civil Jurisdication in the matter of Bermuda Commerical Bank Limited v. Horizon International Bank Limited et al. A copy of the order will be posted below once it becomes available.
[Apr 28, 2005]
On April 21, 2005, following a petition by the Honourable Judith Jones-Morgan, Attorney General of the state of St. Vincent and the Grenadines, the High Court of Justice of St. Vincent and the Grenadines appointed Marcus A. Wide as Provisional Liquidator of Horison Bank International Limited. A copy of the court order is available below.


This Web site will be updated as information becomes available.

 


Court Orders and Decisions - St. Vincent and the Grenadines:
 

18 KB Decision of Justice Gertel Thom, dated February 15, 2007
18 KB Winding Up Order, dated June 6, 2005
18 KB Provisional Liquidation Appointment Order, dated April 21, 2005
18 KB Provisional Liquidation Petition of SVG Attorney General, dated April 20, 2005


Court Orders - Bahamas:
 

18 KB Order of the Supreme Court of the Commonwealth of the Bahamas, recognizing SVG Court Appointed Provisional Liquidator, dated April 25, 2005


 


Proof of Debt:
 

18 KB Proof of Debt - General Form


 


Reports:
 

18 KB First Report of the Liquidator, dated October 6, 2005
18 KB First Report of the Provisional Liquidator, dated May 13, 2005


 


Correspondence:
 

18 KB International Financial Services Authority - Notice of Revocation of Banking License, dated April 6, 2005


 


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