LAWYERS of the major shareholders of Bank of Saipan yesterday said the sale of $3.2 million worth of stocks from JLH Pacific Trust and the Calvos was “not consummated,” contrary to the claim of a U.S. firm that there was complete transfer of 52 percent of the bank’s ownership.
The lawyers also announced that an agreement with the government will be reached soon, including a change of management to ensure the financial viability of the bank and its continuous operation.
“That letter is silly. It is really written on Mr. (Douglas) Montgomery’s behalf. He will never own any stock in this bank as long as he lives, no matter where he lives—on Saipan or in federal prison,” attorney Robert J. O’Connor said yesterday.
“There was no sale—it was never consummated,” he said.
The lawyer of the bank’s board of directors, Rodney Jacob, said the issue raised by Pacific Nakon International Co. “is now being worked out through the appropriate process.”
Pacific Nakon, in a letter to Commerce Secretary Fermin M. Atalig, said any rehabilitation plan offered by JLH Pacific Trust and the Calvos should be rejected because they no longer own or control the bank.
The lawyers of the bank’s major shareholders held a meeting with the government yesterday.
Both parties are confident that they could reach an agreement.
O’Connor said they are going to do “whatever it takes” to rehabilitate the bank.
He said they are considering the proposal of the Attorney General’s Office to put $9.5 million into the bank.
“We are open minded,” O’Connor told reporters.
Attorney General Robert T. Torres said the discussions had been “productive.”
“We hope that they would bear fruit,” Torres said.
However, Torres said it is still too early to report any “definitive results” about the discussions.
But he said the administration is “heartened” by the efforts of all the parties concerned.
Jacob said an agreement will be reached to ensure the solvency and continued operation of the bank.
“We are talking and moving toward that direction—it is inevitable that everyone will benefit,” Jacob told Variety.
The shareholders will “stand behind the bank,” he added.
