22 MAY 2009

Following the meetings of creditors on 19 May 2009, a report has been filed in the Isle of Man High Court today by the Joint Liquidators Provisionally confirming that the Scheme of Arrangement, as proposed by the Company and the Treasury of the Isle of Man, failed to be approved by two of the three meetings of classes of creditors.

A significant number of creditors voted on the proposal, with Forms of Voting and Proxy received from around the world. The following votes, as reported by the Chairman, have been reported to the Isle of Man High Court today:

 

Number

Total Value Total

 

For

Against

 

For

Against

 

Class 1 1,922 376 2,298 49,577,532.04 8,633,579.67 58,211,111.71
Class 2 825 935 1,760 406,222,625.41 215,593,464.58 621,816,089.99
Class 3 13 1 14 309,860.82 3,000,000.00 3,309,860.82

The Scheme of Arrangement has therefore not been sanctioned by the Scheme Creditors, as classes 2 and 3 failed to reach the required 75% in value of those present and voting for the Scheme. Class 2 also failed to achieve a majority in number of those present and voting for the Scheme.

At the next hearing in the Isle of Man High Court on 27 May 2009, the winding up petition is due to be heard and the Joint Liquidators Provisionally will support the making of a winding up order. It is anticipated the Company will be placed into liquidation on that date.

Following the hearing, and if a winding up order is granted, the Provisional Liquidators, as appointed, will focus on ensuring dividends are paid to creditors as soon as practicable. Proof of debt forms will be issued as quickly as possible to creditors to enable them to lodge their claims in the liquidation, with the aim of paying the first dividend within three months of the winding up order being granted.

Postal concerns

The Liquidators Provisionally have been contacted by a small number of creditors stating that the Scheme Documents did not arrive by post. I am disappointed that the papers did not reach all creditors shortly after posting. However, in addition to being posted, notices for the Scheme meetings were placed in the Manx and international press and the documents were all made available on this website. I would like to draw to the attention of creditors the two affidavits which confirm the printing and postage process including the fact that, where required, documents were issued by airmail. I confirm that original forms of proxy and voting were received from all over the world.