January 20th 2018

Business / News

High Court extends CBK's role in Chase Bank, case put off to Nov 14

The receivership over CBLR was last extended for six months from April 7. This followed the announcement on March 30 launching the process of identifying an investor to take an interest in the bank and the request for initial Expression of Interest (“EOI”) from investors.

By Njuguna Kirunkiru@kenyafreepress.comThursday, 05 Oct 2017 20:25 EAT

The High Court today adjourned the hearing of the case in which a depositor is seeking to extend the receivership of the Chase Bank to November 14, allowing the Central Bank of Kenya (CBK) and the Kenya Deposit Insurance Corporation (KDIC), to continue their management of the institution.

The CBK and KDIC had placed bids for the sale of Chase Bank which experienced a bank run in April 2016. The depositor's case was heard this morning in the presence of representatives of the applicant, CBK and KDIC. "In the meantime, the status quo would be maintained, i.e., the time of the receivership would be frozen from today until further orders of the Court," said a statement from CBK.

The receivership over CBLR was last extended for six months from April 7. This followed the announcement on March 30 launching the process of identifying an investor to take an interest in the bank and the request for initial Expression of Interest (“EOI”) from investors. A tentative timeline for this process was also announced.

"Maintaining the receivership will allow the ongoing process to be concluded, and a fitting resolution of CBLR’s receivership. CBK and KDIC reiterate their commitment in keeping with their respective mandates and in accordance with the Laws of Kenya, to protect the interest of CBLR depositors, its creditors, and the wider public interest," the CBK statement said.

"Additionally, CBK and KDIC plan to engage with depositors, shareholders, and other stakeholders in the near future."

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