fp Turks and Caicos

With the reality of TCI Bank Ltd. moving into formal liquidation, customers and shareholders are asking what that means for them.

While full details are yet to be released, Liquidator Anthony Kikivarakis told TCI Bank customers at a town hall meeting in July that liquidation would probably mean years of waiting and only getting a percentage of their money back.

The first step is the beginning of a long process of selling off the bank’s assets to raise money, Kikivarakis said.

The first to receive that money would be the laid off TCI Bank workers who are still owed their severance pay, as well as any National Insurance Boardor National Health Insurance Plan contributions associated with those payments.

Next in line would be the NIB, which loaned the bank $5.5 million shortly before Christmas. The loan was a secured, meaning NIB has a charge against the bank for the total amount. Fees to the liquidators are the next item on the list, along with any expenses they incurred.

Bank depositors would then all be treated the same and begin to receive equal percentage shares of any money that is collected or recovered. Full liquidations can take anywhere from two to 10 years, Kikivarakis said.

All depositors will have to file an official claim, which would represent the amount owed to them. Over time as enough funds could be collected, he said a request would be made to the judge to make payouts to the creditors. This could happen on several occasions over years.

Most of the bank’s assets are tied up in real estate loans. In the current market, selling those assets isn’t going to be easy, Kikivarakis said, and it would be best if they could wait for prices to improve in order to get the depositors the most money back. However, that may take several years.

Since moving into provisional liquidation, all assets of the bank have been frozen, including all customers’ deposits. All cash has been moved out of the local branch to other banks on island, and all incoming payments have been deposited into those accounts.

When a shareholder asked at the July meeting when he might see his money again, Kikivarakis suggested it was highly unlikely. Shareholders come last in the case of liquidation, he said. This means shareholders would receive funds only if 100 percent of all depositors funds were returned. Given the state of the bank’s assets and amount of non-performing loans on the books — around 40 percent — depositors can expect to see only a small share of their funds returned, leaving nothing for current shareholders.

Liquidation payout list
1. Employees salaries and severance pay
2. Liquidators fees and expenses
3. Secured loans, such as NIB $5.5 million
4. Depositors - all considered equal
5. Shareholders - only paid when 100% of depositors money is returned

Customers and shareholders affected by the closure can contact the liquidators at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or visit their website www.tcibpliquidation.com.