Minutes of the Committee of Inspection meeting held on 5
November 2009 are attached. Also attached is a summary of cash
deposits held at 2 November 2009, an update on the loan book as at
31 October 2009 and the expenses policy for the Committee which was
agreed at the meeting.
of Committee of Inspection
ExpensesPolcicy for COI
Summary 2 November 2009
Book Update 31 October 2009
Committee of Inspection Policy
The attached is a document which has been drafted by the
Committee of Inspection. The Committee intend to update this
document periodically as the liquidation progresses.
of Inspection Policy Statement
Filing of proof of claim forms
by the Joint Liquidators
The Winding up Rules require the Joint Liquidators to file every
month with the Rolls Office, copies of all proofs of debt submitted
by creditors, together with a list indicating which have been
wholly or partly admitted and wholly or partly rejected. This would
incur considerable costs, which the Joint Liquidators are keen to
avoid in order to benefit creditors. The Joint Liquidators take the
view that it would be easier for the creditors of KSFIOM to have
access to the proofs and the lists by attending the company's
offices, rather than attending the Rolls Office. Further, the
creditors will not have to pay the (admittedly very small) fee
required to inspect the proofs and lists at the Rolls Office.
Accordingly the Joint Liquidators have applied to the Court for
permission to dispense with the requirement to file these documents
with the Rolls Office, and have given the Court an undertaking to
maintain them for inspection by creditors and contributories at the
offices of the bank. A copy of the relevant Court Order is
attached. Creditors are entitled to inspect the list and then
inspect any particular Proof of Debt which they may have reason to
want to inspect, with the exception that creditors are not entitled
to inspect Proofs of Debt that have been held over (i.e. those
where a decision to admit or reject has not yet been made).
I can confirm that it is our intention to pay a second
distribution in December 2009. The amount of dividend cannot yet be
confirmed, however it is expected to be in the region of 14%. The
amount will be confirmed in early December when the amount of cash
available for distribution is known.
Any creditors who have not yet submitted a claim, either
directly or through the Depositors Compensation Scheme, are asked
to submit their claims as soon as possible to ensure that they
receive the distributions to which they are entitled.
The Tynwald Select Committee has been taking evidence regarding
the events leading up to the collapse of the bank. For the
information of creditors, transcripts of the oral evidence given by
the former Directors of the company and the Financial Supervision
Commission are attached. The Committee's report is expected to be
published in March 2010.
Directors Oral Evidence
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