Section 90: Liquidation Plan

1) Within thirty days of the completion of the classification of claims pursuant to Section 88, the liquidator shall prepare a detailed plan for the liquidation process of the bank or financial institution and submit it to the court for approval and inform the Rastra Bank thereof.

2) The liquidation plan to be submitted pursuant to Sub-section (1) shall include the following matters;

(a) Detailed description of the assets or liabilities of the bank or financial institution, their nature and results,

(b) Details of the past and projected income and expenditure of the bank or financial institution,

(c) Detailed description of the continuation or cancellation of the current financial transactions of the bank or financial institution,

(d) Decision or order made by the court,

(e) Details of the action taken to claim compensation for the offence or other illegal acts committed by the director, officer or employee of the bank or financial institution,

(f) Detailed description including classification of claims and priority of payment,

(g) Plan for sale and liquidity of the main assets or groups of assets of the bank or financial institution,

(h) Schedule of liabilities of the bank or financial institution and possible payments to be made to depositors and creditors within the next ninety days,

(i) Costs and expenses of compulsory liquidation,

(j) Other details specified by the Rastra Bank.

3) The liquidator shall update the liquidation plan pursuant to Sub-section (1) on a quarterly basis.

4) After the court approves the liquidation plan, it shall be made available for inspection to the creditors of the bank or financial institution whose claims are mentioned in the plan.

5) Notwithstanding anything contained elsewhere in this Act, a bank or financial institution that has been subject to compulsory liquidation shall not be recapitalised by investing in whole or in part.