The management of Oceanic Bank International Plc has said that continuing to disburse funds to Aero Contractors on their expired credit facility with the Bank will be tantamount to putting depositorsâ€™ funds at risk.
The Bankâ€™s management explained that Aero originally had a series of short-term facilities at an interest rate of between 17 and 19 per cent per annum with the Bank. These facilities expired since September.
A renewal offer from the Bank which substantially increased the tenor of the facility from between three months and one year to a 10-year period at a reduced interest rate of 12.5 per cent has been on the table for Aero since December 15, 2009. To date this offer has not been accepted by the board and management of Aero.
â€œWhilst Oceanic Bank remains committed to supporting Aero, the absence of a valid contractual loan agreement will put depositorsâ€™ funds at risk,â€ the Bankâ€™s management said.
This follows what the bank describes as insensitive statements in the media by Aero Contractors including a spate of reports portraying Oceanic Bank as starving Aero of operational funds. â€œOur transaction with Aero is transparent and indicative of our commitment to supporting businesses in a manner that provides equity and mutual benefit to the Bank and its customers.â€
â€œWe have bent over backwards to support Aero and have been waiting for an acceptance of our credit renewal since 15 December, 2009. We are very certain that the level of positive support given to Aero by Oceanic will be very difficult to replicate by any bank in this environment.â€
â€œHowever, it would appear that Aero just wants access to credit facilities without provision to pay back. The way forward is for Aero to pay down the facility or accept the renewal offer.â€