CKC plans to object against the demand of the bankruptcy of CKC as well as a counterclaim, which they intend to explain in the "verweerwschrift".
Objection #1:
CKC appealed the "intrekking" of their license at the LAR judge. They also believe that until that matter is settled, it would be imprudent to proceed with the bankruptcy hearing.
Objection # 2:
According to the "toelichting" to art. 37 of the Lansverordening toezicht bank-en kredietwezen, (LTBK) two things must happen for bankruptcy to occur. (a) The capital must be negative, and (b) the portfolio must be wound down or transferred, or the bank must be believe that a transfer of the portfolio is not feasible. With the bank's cooperation, they are busy attempting the transfer their portfolio to a sister credit Union out of Nevis. This means that the transfer of the portfolio still remains a possibility, and as such, the conditions for declaring bankruptcy have not been met.
Objection #3:
Members have agreed to conversion option, whereby some US$280,000 has been promised by members to be converted to equity, thus reducing negative equity. They anticipate raising enough such conversions to totally erase the negative equity of US, 395,000.
CKC counterclaim:
In the event that the court, in spite of the objections, still proceeds to pronounce the bankruptcy of CKC, the following counterclaim is submitted by CKC:
Pursuant to art. 39 of the LTBK the central bank was supposed to have a deposit guarantee system in place. This was supposed to have been done since 1995 when the LTBK was introduced. As the bank has failed to implement the said deposit insurance, CKC holds the bank liable for covering 100% of member deposits . As the court can see in "verweerschrift" the Dutch Central Bank insures accounts up to 100,000 Euros, per account, with no limit to the number of accounts a depositor holds.
As Antillean Law follows closely Dutch law, CKC have every reason to believe that the
Central Bank of Curacao and St. Maarten should have implemented a similar system, which would have allowed depositors to place their deposits in such a manner that they would be 100% covered by the deposit insurance scheme. This could be easily accomplished by each member opening multiple accounts, with each accounting not holding more than the amount guaranteed.
In summary request the court -as far as the bankruptcy request is concerned- to:
- Reject the bankruptcy petition of CKC
- Put in on hold until the LAR case has been settled, or until the issue of the portfolio transfer has been settled.
In the matter of our counter claim which is conditioned upon the bankruptcy being pronounced, CKC request to court:
- Find the Central Bank liable for 100% of member deposits.
- Move the case to the normal docket for further proceedings.
