2015 Updates

03 DECEMBER 2015

Assignment of claims

The ability to assign claims is an issue which has been raised regularly, both by life companies and policyholders. The legal position in the Isle of Man is that an assignment requires a Court Order before it can be put into effect. The process of obtaining a Court Order can be costly and this has acted as a barrier to creditors who want to simplify their affairs.

In order to assist the life companies and their policyholders, I have applied to Court and have received an Order which permits me to accept assignments from the life companies without the need for a Court Order. This Order does not compel the life companies to agree to requests from their policyholders for assignment, nor does it oblige me to approve them, however it does remove the final costly step from the assignment process.

23 OCTOBER 2015

Cash Position

Attached is the summary of cash balances held at 30 September 2015.

Cash balances increased by approximately £5.6 million during the quarter. Loan repayments, interest and other income was approximately £5.6 million. Catch up dividend distributions were approximately £15,000. Other liquidation expenses were approximately £81,000.

> Cash Position

Loan Book

Attached is the summary of the loan book position at 30 September 2015.

During the quarter to September 2015, approximately £5.6 million was received in full and final settlement of four connected loans, and £8.8 million was written off, after a lengthy legal process.

The loan tables shown have been converted to Sterling using exchange rates as at 30 September 2015.

 >Loan Book

Interest

It is intended that a distribution of interest will be made at the end of the liquidation when all assets have been recovered. The method of calculation is not clear under Manx law and we have sought directions from the Court. The website will be updated as soon as the position is clarified.

Policyholders

Life insurance policies make up a significant proportion of creditors in the liquidation. I understand that some policyholders wish the life companies to assign their claims over to them so that the policies can be closed down. This is a matter between the life companies and the policyholders, however we are looking at ways in which we can assist and will update the website with any developments.

10 AUGUST 2015

Report to Creditors

Attached is a Report to Creditors for the period from 10 January 2015 to 9 July 2015.

 >Report to Creditors

13 JULY 2015

Cash Position

Attached is the summary of cash balances held at 30 June 2015.

Cash balances increased by approximately £2.3 million during the quarter. Loan repayments, interest and other income was approximately £2.6 million. Catch up dividend distributions were approximately £56,000. Liquidators fees were approximately £203,000. Other liquidation expenses were approximately £77,000.

 >Cash Position

Loan Book

Attached is the summary of the loan book position at 30 June 2015.

During the quarter to June 2015, one facility was redeemed in full realising approximately £2.5 million.

The loan tables shown have been converted to Sterling using exchange rates as at 30 June 2015.

 >Loan Book

Retirement of Peter Spratt as Joint Liquidator

The Isle of Man High Court approved the retirement of Peter Spratt on 9 June 2015. Michael Simpson will continue in his role as the sole Liquidator.

 >Retirement of Peter Spratt as Joint Liquidator

17 APRIL 2015

Cash Position

Attached is the summary of cash balances held at 31 March 2015.

Cash balances decreased by approximately £10,000 during the quarter. Loan interest and other income was approximately £158,000. Catch up dividend distributions were approximately £115,000. Liquidation expenses were approximately £53,000.

 >Cash Position

Loan Book

Attached is the summary of the loan book position at 31 March 2015.

During the quarter to March 2015, no facilities were redeemed in part or in full. However, in early April, one facility was repaid in full realising £2.5 million.

The loan tables shown have been converted to Sterling using exchange rates as at 31 March 2015.

> Loan Book

26 FEBRUARY 2015

Report to Creditors

Attached is a Report to Creditors for the period from 10 July 2014 to 9 January 2015.

 >Report to Creditors

23 JANUARY 2015

Cash Position

Attached is the summary of cash balances held at 31 December 2014.

  >Cash Position  

Cash balances decreased by approximately £1.1 million during the month. Loan repayments, interest and other income was approximately £20,000. Catch up dividend distributions were approximately £188,000. Liquidation expenses were approximately £943,000.

Loan Book

Attached is the summary of the loan book position at 31 December 2014.

  >Loan Book

During December 2014, one facility was redeemed in part realising approximately £18,000. 

The loan tables shown have been converted to Sterling using exchange rates as at 31 December 2014.

Future updates

Given that the vast majority of assets have now been realised, there are sometimes very little in the way of developments from month to month. Accordingly, in order to save costs, it has been decided that our standard website updates will, in future, be published quarterly rather than monthly. This means that the next standard update (i.e. with cash and loan book figures) will be issued in April 2015 based on figures to 31 March 2015.

However, the website will be updated for any matters of significance as they arise and the six monthly report to 9 January 2015 will be uploaded in early February.