RNS Number : 7314H
Vantis PLC
26 February 2010
For Immediate Release 26 February 2010
VANTIS plc ("Vantis" or "the Group")
Update on Appeal Hearings in relation to Stanford International Bank - in Liquidation ("SIB") Vantis provides the following update in respect of SIB.
Following the appointment of Nigel Hamilton-Smith and Peter Wastell of Vantis Business Recovery as Joint Liquidators of SIB in April 2009, SIB assets of circa US$100 million have since been located in the UK. To gain control of these assets, the Joint Liquidators sought formal recognition of their appointment and, on 3 July 2009, the High Court of Justice in England & Wales issued a judgement in their favour that the Centre of Main Interest of SIB is Antigua and Barbuda and that the Joint Liquidators should be recognised as the office holders to whom the assets of SIB in the UK should be entrusted.
The Joint Liquidators also issued a further appeal to seek discharge of the Criminal Restraint Order obtained by the UK Serious Fraud Office ("SFO") on behalf of the US Department of Justice ("DOJ"). They requested the control of the funds so that they can be distributed to depositors and creditors, rather than retained with a view to making them available to the DOJ.
The appeal hearing, which also included a hearing to deal with the US receiver's appeal against the order of the High Court of 3 July 2009, took place between 16 and 20 November 2009 and judgment in respect of the two appeals was made on 25 February 2010 as follows:
The first appeal was made by the US Receiver, Mr Ralph Janvey, against the decision of the UK High Court which found that the Centre of Main Interest of SIB was Antigua, and not the United States of America. Mr Janvey also appealed the decision that the Joint Liquidators should be recognised as the office holders to whom assets of SIB in the UK should be entrusted.
The UK Court of Appeal upheld both decisions made on 3 July 2009 and denied Mr Janvey his appeal.
The second appeal dealt with the Joint Liquidators' application to discharge the Criminal Restraint Order which had been obtained by the UK SFO on behalf of the DOJ. The Court of Appeal has decided that the restraint order should remain in place.
The Joint Liquidators have concluded that a decision to keep the restraint in place should be appealed to the Supreme Court, as the restraint will only further delay the release of funds to depositors and creditors. This is due to the restraint requiring the funds to remain frozen until the criminal proceedings in the US have been concluded, which may not occur until 2011 at the earliest.
The Joint Liquidators further consider that the remittance of funds to the DOJ will only provide further confusion and concern for SIB depositors and creditors particularly given circa 9,000 investors who have registered their claims with the Joint Liquidators.
Separately, a decision from the financial regulator in Switzerland is awaited on whether the Joint Liquidators or the US receiver should have control of SIB assets located in Switzerland.
The Group remains confident that outstanding time costs will be recovered in due course but the various legal actions means that timing is uncertain.
Commenting on the judgment, Paul Jackson said:
"We are delighted that the UK Court of Appeal has found in our favour that the Centre of Main Interest of SIB is Antigua, and therefore the Joint Liquidators should be recognised as the office holders to whom assets of SIB in the UK should be entrusted.
In respect of assets in Antigua and Barbuda, substantial land assets have been identified and are therefore under the control of the Joint Liquidators. We are working closely with the Antiguan Government to gain the requisite planning and environmental consents to enable these properties to be fully marketed and sold.
It is disappointing that the second appeal decision found that the Criminal Restraint Order should remain in place in respect of the cash assets of SIB and that the decision will have to be appealed at the Supreme Court."
For further information:
Vantis plc +44 20 7417 0417
Paul Jackson, Chief Executive
Stephen Smith, Interim Finance Director
Paul Ashton, Company Secretary
Investec Investment Banking +44 20 7597 5970
Martin Smith
Buchanan Communications +44 20 7466 5000
Richard Darby, James Strong, Chris McMahon
Notes to Editors
Vantis plc is the AIM listed leading UK accounting, tax and business recovery and advisory group, focused on helping owner-managed businesses and high net worth individuals successfully achieve their personal and business aspirations.
Services are provided locally and nationwide by experienced professionals and specialist industry teams who offer comprehensive sector knowledge and product expertise. Vantis strives to provide all clients with successful, bespoke solutions to help generate and preserve their wealth.
The Vantis group offers a range of specialist skills including Accounting, Taxation, Business Advice, Corporate Finance, Asset Finance, Forensic Accounting and Dispute Resolution, Business Recovery & Personal Insolvency Services, Restructuring and Turnaround Services, Outsourcing, Management Consultancy, Company Secretarial, Customs Duty Recovery and Advisory Services, Independent Financial Advice, High Net Worth Services and Sports Advisory Services and Solutions.
The Vantis group now has approximately 1,000 staff operating from 17 locations throughout England.
For more information about Vantis, please visit www.vantisplc.com
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