9 AUGUST 2016

Letter to Unsecured Creditors

PDF Letter to Unsecured Creditors

Today I have sent a letter to unsecured creditors advising them of progress in the process to determine how interest should be calculated in situations where there is a surplus in an insolvency after the proven claims of unsecured creditors have been paid in full. I applied to Court for directions on this process on 22 June 2016 and an Order was made on 8 July 2016 (Attached).

PDF Court Order

In the Order the Court specified that notice of an Application should be sent by post to the last known physical address of each admitted unsecured creditor or where the admitted unsecured creditor had requested e-mail correspondence only, to the last known e-mail address.

Set out below is a copy of the Application made to the Isle of Man High Court for guidance as to the method to be applied by the Liquidator when calculating the interest to be paid to creditors of the Bank from the limited surplus that remains now that creditors have been paid the full amount of their proofs of debt. The following points should be noted:-

1. Creditors who had their outstanding interest up to 8th October 2008 capped at 5% will receive the balance of their interest due up to that date;

2. With regard to interest to be paid for the period from 8th October 2008 onwards, this is likely to be a small sum for each creditor, as the remaining surplus is quite small;

3. The Application to the Manx High Court seeks a preliminary direction, at this stage, as to whether Section 248 of the Companies Act 1931 continues to apply to the liquidation of the Bank. Once that issue has been decided by the Manx High Court, the Liquidator will return to the Court for more detailed directions as to how interest should be calculated, either under Section 248 or otherwise, depending upon the Court’s decision upon this point;

4. Accordingly, at this stage, the Application only relates to the issue of whether Section 248 will continue to apply to the liquidation of the Bank, and directions as to the calculation of interest in detail will be given by the Court at a later date, if necessary.

5. The reasons for which the Court’s guidance as to whether Section 248 still applies to the liquidation of the Bank are set out in the Skeleton Argument lodged with the Court, a copy of which is set out on a separate page on this website.

The letter also refers to the other matters that were contained in the Court Order, and included as enclosures the Application Notice and my Witness Statement. (Attached). The letter was approved by the Court on 15 July 2016.

PDF Application Notice

PDF Witness Statement of Mike Simpson

The Order also specified that a copy of the Skeleton Argument (with Authorities) made in connection with the application should be published on this website (See separate update on this website also dated 9 August 2016).

Contacts

The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email ksf@iom.pwc.com . If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.


Mike Simpson
Liquidator