The creditors of the closed Bank of Credit & Commerce International (BCCI) look set for further delays in their compensation payments after four former bank employees appealed against a $1,800 million compensation settlement. The appeal was filed in the Luxembourg court on 28 April, three months after the court approved the settlement plan (MEED 10:2:95).
The appeal documents said the settlement would be ‘contrary to Luxembourg public order and would violate the principles of equality’. It also said that the settlement offered by BCCI’s main shareholder, the government of Abu Dhabi, was economically unacceptable and not high enough.
The former employees are Nasir Mahmoud, Ali Qayum, Mansour Malik and Halida Shafiullan.
An estimated 250,000 creditors were expected to receive an initial payment during the summer worth about 20 per cent of the money they lost when the bank was closed. About $8.5 million is lost in interest each month that the creditors have to wait, the liquidators say.
The creditors are also awaiting a decision on a separate $245 million settlement between the BCCI liquidators and the Jeddah-based National Commercial Bank.