HK victims may get more after BCCI London deal

COMPENSATION for victims of the collapsed Bank of Commerce and Credit Hong Kong could be increased following talks between liquidators and shareholders.

A formula for higher and earlier payments is believed to have been finalised in London between liquidators Touche Ross and Abu Dhabi, the majority shareholders of the bank which was closed in 1991 because of widespread fraud.

The major beneficiaries are likely to be creditors of the bank's Grand Cayman and Luxembourg-based subsidiaries.

''The agreement was reached yesterday [Tuesday] and its details will be worked out later,'' one source said.

''It has to be approved in Britain and Luxembourg but we expect disbursements to depositors to be quicker.'' Philip Looney, a director of KPMG Peat Marwick, which is assisting the joint special managers appointed to compensate Hong Kong victims of the collapse, said: ''While we have not been involved in these talks, we will share in any distribution they make.'' Mr Looney added: ''But this is likely to have limited impact because the exposure of BCC Hong Kong to the overall group was not significant.'' Mr Looney said about $5.2 billion has so far been paid to former Hong Kong creditors in four interim dividend payments.

About 30,000 who were owed less than $100,000 have been fully paid, with those owed more receiving payments totalling 64 per cent of their claim.