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New BCCI law battle

Monday 13 July 1992 23:02 BST
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A GROUP of creditors of the collapsed Bank of Credit and Commerce International yesterday resumed their legal battle against the controversial 30p-in-the- pounds 1 settlement deal sanctioned by the High Court last month.

The creditors, led by Adil Elias, chairman of the BCCI Depositors Protection Association, are challenging the decision of the Vice- Chancellor, Sir Donald Nicholls, to approve proposals negotiated by UK liquidators Touche Ross with the Abu Dhabi government, BCCI's majority shareholder.

Their counsel, David Hunt QC, contended in the Court of Appeal that the judge had wrongly substituted his own commercial judgment for that of creditors who had rejected the deal.

Mr Hunt argued there was a 'fundamental flaw' in the decision. The correct legal approach was that the wishes of the majority of creditors were paramount, he said.

The appeal is scheduled to last three days.

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