BCCI (Overseas) Ltd (‘BCCI’) ((in Liquidation)) and the Bank and Trust Companies Law 1989 and the Companies Law (2007 Revision)

• Jurisdiction: Cayman Islands
• Judge: The Hon. Anthony Smellie, C.J.
• Judgment Date: 09 September 2009
• Court: Grand Court (Cayman Islands)
• Docket Number: CAUSE NO. 284 of 1991
• Date: 09 September 2009

In the matter of BCCI (Overseas) Limited (‘BCCI’) (In Liquidation) and in the matter of the Bank and Trust Companies Law 1989 and in the matter of the Companies Law (2007 Revision)

[2010] CIGC J0226-2

Before

IN CHAMBERS

The Hon. Anthony Smellie, C.J.

CAUSE NO. 284 of 1991

IN THE GRAND COURT OF THE CAYMAN ISLANDS

RULING

1 On the 9^th September, 2009, I reserved my decision on this, the JOLs” application for approval of their fees and expenses, pending ‘further written submissions on the matter only of what rate of increase should be given the JOLs retroactive and going forward, the basis being that that rate is expected to take them to the end of the assignment’.

2 Those further submissions having been received form the JOLs and the Committee of Creditors, this is my ruling.

3 The increased rates would be retroactive insofar as the JOLs seek an upward adjustment to the fees charged to the Estate for work done in the calendar years 2007 and 2008. The JOLs also sought revised rates which would be applied for the calendar years 2009 and 2010. This latter aspect of their application was however, and as I understand it clarified as set out above; subject to the JOLs having the right to come before the Court to address unforeseen material changes in inflation in the period up to 2011, or if the closure process is later subject to significant delay.

4 Having considered the affidavits of Mr. Pilling (on behalf of the JOLs) and of Mr. Joy on behalf of the COC) as well as the arguments of counsel on both sides, I have decided that it is reasonable, fair and appropriate to conclude as follows:

• (i) While the COL indices show an increase of 7% for the period 2007/08, after offsetting the threshold of 2.5% (identified in my rulings of 19 July 2007 and 16 November 2007); the JOLs shall be entitled to a retroactive increase in their fees of 4.5% by reference to the net fees billed for the 2007/08 period. For that two-year period the amount thus authorised, having regard to paragraph 17 of Mr. Pillings” affidavit (sworn on 13 July 2009), shall be USD381,928.

• (ii) I accept the proposal set out in paragraph 24 of that affidavit for adjusting future rates going forward beginning 1^st January 2009 to the end of the assignment.

  That approach would apply an across-the-board increase based on inflation experienced in the past period, which is the principle established in the Ruling of July 19 2007.

  In the particular...