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Centurion
Bank gets court approval for Sabre revamp plan
Our
Banking Bureau
13 September 2003
 Mumbai:
The Bombay High Court yesterday approved the recapitalisation
and restructuring of Centurion Bank.
In
an official release, the bank said the court's final hearing
was held yesterday and it approved the scheme of arrangement
submitted by Sabre Capital.
The
Reserve Bank of India's permission had also been sought
for the same, says a senior official of Centurion Bank,
which has its registered office in Goa.
In
April 2003, Sabre Capital Worldwide submitted the proposal
to revive the private sector bank. The proposal was approved
by the bank's board of directors, and subsequently by
its shareholders and creditors.
 The
scheme consists of three major proposals: restructuring
of capital by reducing the face value of the bank's share
from Rs 10 to Re 1, infusion of fresh capital of Rs 319
crore in two phases, and takeover of management control
by Sabre Capital and merger of Bank Muscat with Centurion
Bank.
However,
the merger of the foreign bank, which operates through
a single branch in Bangalore, with Centurion Bank awaits
the final hearing of the Karnataka High Court scheduled
for 10 October 2003.
 The
bank's board has set a deadline of end-October for Sabre
to bring in the first phase of capital to the tune of
Rs 219 crore. Once the capital is brought in, the board
would be reconstituted, officials said.
List of reports on Centurion
Bank
List
of reports on Sabre Capital Worldwide
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