27 NOVEMBER 2008

Adjournment of winding up petition

At a hearing at the Isle of Man High Court today, before Deputy Deemster Corlett, the joint petition of the Bank and the Financial Supervision Commission was adjourned until 10am, 29 January 2009 at the request of the Isle of Man Treasury.

The Isle of Man Treasury informed the court that high level discussions were still taking place between the UK Treasury (which had confirmed that it would represent the interests of the Isle of Man) and the Icelandic Government which now owns Kaupthing Bank h.f. but that to date there had been no tangible outcome to these discussions.

Her Majesty's Attorney General for the Isle of Man, appearing for the Treasury, informed the Court that a Committee has been established of senior Isle of Man politicians to consider alternatives to a traditional liquidation process. He also advised that the Treasury had instructed a firm of restructuring specialists to assist in this regard. In furtherance of this, the Treasury asked the Court to adjourn any further consideration of the winding up petition for a period of 60 days to allow those assisting the Treasury to investigate and consider, among other things, potential alternative routes to enable creditors to receive a dividend or payout over and above the amount the majority of creditors would receive on a straight liquidation, even with a Depositors Compensation Scheme award and potentially quicker.

The Treasury submitted that a period of 60 days was required to enable full consideration of any alternative plan. The majority of creditors in Court supported the Treasury's application for an adjournment and accepted that 60 days was a reasonable request. In the circumstances the Court has granted the adjournment to 29 January 2009 but ordered the Treasury to file an affidavit by no later than 15 January 2009 which must update the Court as to progress. All other parties to the winding up petition may respond to the Treasury's affidavit by no later than 22 January 2009. The Attorney General assured the Court that should it appear that no alternative plan is feasible before these dates, the Treasury will inform the Court.

As liquidator provisionally and an officer of the court, I have a neutral role in relation to the application for a winding up order and in those circumstances my position has to be neutral with regard to the request for an adjournment. However I provided the Court with an affidavit which set out the steps taken by me as Liquidator Provisionally to date and a copy is available on this website.

The period up to 29 January 2009

It was made clear to the Court that I will continue to pursue my duty to preserve and protect the assets of the Bank. I will also continue to see parties interested in purchasing all or part of the business.

The Attorney General referred to the Treasury's wish to assist in enabling a payment on account to be made to depositors as soon as possible. I will actively work with the Treasury to explore what may be possible in this regard, given the severe hardship I am aware some depositors are experiencing.

Contacts

As previously, the best way to make contact is to write to the bank or to email branch@singers.co.im. If you need to telephone the bank, please use the main switchboard number +44 1624 699222.

 

Mike Simpson

Liquidator Provisionally