fp Turks and Caicos

Provisional liquidators released details Wednesday, April 21, of their assessment of TCI Bank, revealing three major withdrawals which put the bank on the brink of failure.

A major shareholder pumped $5.5 million into the ailing bank in December, only to have three depositors quickly withdraw $4 million, keeping the Turks and Caicos Islands’ only indigenous bank on the brink of failure, court-appointed liquidators said in a statement.

The five-year-old institution had been suffering for nearly two years from mounting unpaid loans, which prompted the independent Financial Services Commission to shut the bank April 9 to protect the remaining assets of shareholders and depositors.

The shareholder that put up $5.5 million and the three depositors who then withdrew $4 million were not identified by the liquidators, nor did the liquidators give any details on the amount, number or recipients of the delinquent loans. But FSC Managing Director Kevin Higgins has said that the major withdrawals were made by local depositors each with $500,000 or more in the bank.

As for the $5.5 million infusion of cash, the National Insurance Board has said that “steps were taken by the NIB in December to assist the bank with much needed financial support” but did not elaborate. NIB, which handles the country’s pension fund, is a major shareholder in TCI Bank.

Anthony Kikivarakis and Mark Munnings, partners at Deloitte & Touche Bahamas, who were appointed by Chief Justice Richard Williams to find solutions for the ailing bank, say although several interested parties have come forward to purchase the company, “the prospect of a feasible rescue plan cannot be determined at this time.”

Meanwhile, local businesses and individuals are frozen out of their accounts, wondering when and how much of their money they will ever recover.

“A major capital injection is still necessary to save the company as well as a commitment from depositors not to withdraw funds,” the liquidators said.

A number of proposals from various parties have been made to rescue the bank, including a prospective investor out of Trinidad and Tobago, a Bahamian bank and a group comprising some of TCI Bank’s Eastern Caribbean shareholders.

“We are pleased that interests in the company has increased, and we are committed to reviewing and assessing all offers as quickly as possible before making a recommendation to the court,” the liquidators said. “In any event, the agreement of the majority of shareholders, depositors, and creditors will have to be considered.”

“There is no ‘quick fix’ to this situation due to the varied interested groups and the number of proposals that are being made. Our recommendations to the court will seek to balance the interest of depositors and shareholders.”

The liquidators said they will deliver a report to the court before the next scheduled hearing June 4.

In the meantime, the liquidators say all loans must continue to be paid to the bank at its premises at Butterfield Square.

Customers and shareholders can contact the liquidators at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 649-941-7500. For more information, visit the Web site www.tcibpliquidation.com.