THE board of directors of Bank of Saipan and the government have agreed to save the bank’s “commercial viability” while the court prosecutes the key individuals involved in the multi-million fraud case.
Commerce Secretary Fermin M. Atalig told Variety that during the meeting, the government and representatives of the three main shareholders— JLH Trust, the Calvo and Tan families—agreed to come up with individual plans that would ensure the bank’s solvency and continued operation.
“We will then decide which of the plans will be agreeable to everyone,” Atalig said.
Aside from Atalig, the government was represented in the meeting by Attorney General Robert T. Torres, special assistant for banking Oscar Camacho, Deputy Banking Director Lourdes Pangelinan and the bank’s temporary receiver, Randall Fennell.
Neither David Lujan, a member of the bank’s board of directors, nor their legal counsel returned this reporter’s call.
Attorney Steve Pixley of Tan Holding said they were working on their own plan that will be presented during their next meeting.
Atalig said the different parties have until June 18 to submit their proposals. The parties will be given a day to review and study them.
On July 19, they will meet to discuss the various proposals.
Asked what the government would do if the parties failed to reach an agreement, Atalig said: “I don’t want to second guess what will happen.”
Torres said the meeting was not geared toward an “amicable settlement” that will resolve the legal and criminal cases pending in court.
“The meeting is purely for resolving the commercial aspects of it,” Torres said.
He said the meeting discussed the rehabilitation of the bank pursuant to the Superior Court’s order.
“The tone of the meeting was conciliatory and (everyone agreed to help ensure the) commercial viability of the bank,” Torres said.
