The main group of creditors, the 1986 Noteholders, named for the first time on Friday, must secure £19.5m in securities costs for the trial to proceed.
Credit Suisse First Boston, the investment and securities bank; CoMac Partners, investment advisers; and Franklin Mutual Advisors were among those named as creditors. Newly appointed liquidator KPMG must ensure the money is available by Christmas or the case, expected to be the most expensive in legal history, will be stayed.
Rick Murray, adviser to Deloitte & Touche Singapore, said: ‘The awarding of costs for security in the Barings case is unprecedented. It is gratifying to have this confirmation, that in meeting the extraordinary costs of defending the Barings claim, we have established formidable defences.’
After five-and-half years representing Barings’ creditors, who are suing the merchant bank’s former auditors Coopers & Lybrand and Deloittes for £1bn, Ernst & Young stepped down as liquidators last week when the US vulture funds succeeded in removing the firm in a second attempt.
A High Court ruling last week has also paved the way for costs to be awarded Deloittes due to the postponement of the trial date set for June 2001. The amount will be decided after the case has ended.
The trial, to start on 2 October, was originally scheduled for June but was delayed following a failed settlement deal between E&Y and Coopers, now part of PricewaterhouseCoopers, the firm set to lose the most from the trial.
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