Website, Cash Position and Final Dividend

Website

It has been necessary to move this website to a new platform, which is why the appearance of the website has changed. There has been no change to the content of the website.

Cash Position

Attached is the summary of cash balances held at 30 September 2019.

Click here for cash position

Cash balances decreased by approximately £15,000 during the quarter. Income totalled approximately £7,000 and liquidation expenses totalled approximately £22,000.

Final Dividend


As previously reported there are freezing orders in respect of some former KSFIOM customer accounts and there is a legal dispute as to whether these accounts should be confiscated or distributed to unsecured creditors. Therefore I cannot quantify the final amount available for distribution to unsecured creditors until this is resolved. The matter is in Court and I will update creditors as soon as the position is clarified.

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



Report to Creditors

Attached is a Report to Creditors for the period from 10 January 2019 to 9 July 2019.

Report to Creditors

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

Cash Position and Final Dividend

Cash Position

Attached is the summary of cash balances held at 30 June 2019.

Cash balances decreased by approximately £10,000 during the quarter. Income totalled £7,000. Legal expenses totalled £3,000. Other liquidation expenses totalled £14,000.

Click here for Cash Position

Final Dividend

It is intended that one further dividend will be paid to creditors in respect of each class of interest. As previously reported there are freezing orders in respect of some former KSFIOM customer accounts. The Isle of Man Attorney General is claiming that the money which was held in these accounts should be confiscated. I believe that is incorrect and that, as I have received no proof of debt in relation to these accounts, the money should be available for distribution to unsecured creditors. Therefore I cannot quantify the final amount available for distribution to unsecured creditors until this is resolved. The total amount involved is significant to the amount available for distribution. The matter is in Court and I will update creditors as soon as the position is clarified.

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

Cash Position and Final Dividend

Cash Position

Attached is the summary of cash balances held at 31 March 2019.

Cash balances decreased by approximately £38,000 during the quarter. Income totalled £9,000. Dividends paid totalled £39,000. Other liquidation expenses totalled £8,000.

Click here for Cash Position

Final Dividend

It is intended that one further dividend will be paid to creditors in respect of each class of interest. The timing and amount of the dividend cannot yet be determined with certainty, as the freezing orders in respect of former KSFIOM customer accounts have not yet been satisfactorily resolved. I will update creditors as soon as the position is clarified.

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

Report to Creditors

Attached is a Report to Creditors for the period from 10 July 2018 to 9 January 2019.

Click here for Report to Creditors

Destruction of pre-liquidation data

I applied to Court for permission to destroy all pre liquidation data, as in my view it is no longer required. The cost of preserving the data, potentially for six years after the end of the liquidation, would be significant and so impacts the calculation of the final distribution. The following order was issued by the Court on 14 January 2019.

Click here for Court Order

The order permits me to destroy KSFIOM’s books, papers and electronic data following payment of the final dividend in the liquidation, and to destroy my Liquidator’s books, paper and electronic records relating to KSFIOM after 5 years have expired following the date of dissolution of KSFIOM. As reported in my previous update the ability to destroy the considerable amounts of pre-liquidation books, papers and electronic data will increase the amount of cash I am able to distribute as the final dividend.

Final Dividend

It is intended that one further dividend will be paid to creditors in respect of each class of interest. The timing and amount of the dividend cannot yet be determined with certainty, as I have received several freezing orders in respect of former KSFIOM customer accounts. The problem that I have is that the freezing orders relate to accounts on which I have received no proof of debt, which means that until they are resolved I cannot quantify the final amount available for distribution to unsecured creditors. The total amount involved is significant to the amount available for distribution.

Creditors who have already had their proof of debt admitted by the Liquidator do not need to do anything further unless they claimed under the Early Payment Scheme and/or the Early Payment (No. 2) Scheme and subsequently received dividends direct from the Liquidator. These claimants will now receive their final dividend from the DCS Administrator, and will need to provide the DCS Administrator with such information as he requires to be able to make payments.

Contact details for the DCS Scheme Administrator are

  • Website https//www.dcs.im/
  • Email: dcs@kpmg.co.im
  • Phone: +44 1624 625 680
  • Postal Address: Isle of Man Depositors’ Compensation Scheme, PO BOX 201 , Douglas, Isle of Man, IM99 1TR

If you did not claim through the EPS or DCS, you will receive your final dividend direct from my team. As the team has not made dividend payments since 2014, we would ask you to check that the bank accounts that we have on file are still open. If you need to advise us of any changes, please contact us at the address below as soon as possible. We will need a letter (not an email) advising us of any changes and will need to contact you to check authenticity of any changes requested. If you do not advise us of changes and final dividend payments are returned, this will inevitably lead to delays in you receiving your payments.

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

Cash Position

Attached is the summary of cash balances held at 31 December 2018.

Click here for Cash Position

Cash balances decreased by approximately £899,000 during the quarter. Income totalled £4,000. Liquidator expenses totalled £820,000. Legal expenses totalled £68,000. Other liquidation expenses totalled £15,000. The reason for the high level of expenses in this quarter is because final bills for liquidation and legal fees have been paid in advance so that the VAT thereon can be reclaimed and distributed to creditors. The liquidation fees cover the period from 1 April 2017 to the end of the liquidation.

Statutory interest and final dividend

I have applied to Court for permission to destroy all pre liquidation data, as in my view it is no longer required. The cost of preserving the data, potentially for six years after the end of the liquidation, would be significant and so impacts the calculation of the final distribution. We will proceed to finalise the calculation of the final distribution (comprising deferred and statutory interest) and will announce a date for payment as soon as possible.

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

Statutory Interest

Further to the previous update on 5 October 2018, there was a hearing at the Isle of Man High Court on 30 October 2018 to consider matters relating to statutory interest. The Court Order issued following the hearing is attached.

Click here for Court Order

The Order instructs the Liquidator to pay statutory interest and/or deferred interest due to all depositors who claimed in the DCS and/or the EPS to the DCS, and statutory and/or deferred interest to all creditors who did not claim in the DCS or the EPS to those creditors. Regarding life insurance bondholders who claimed in the EPS, the Liquidator shall pay statutory interest direct to the insurance companies apart from amounts due to the Isle of Man Treasury in respect of it’s admitted proof of debt in respect of assignments made to it as set out in section 40 of the skeleton argument filed in support of the Liquidator’s application to the High Court and published on this website on 15 August 2018,

We will proceed to finalise the calculation of the final dividend (comprising deferred and statutory interest) and will announce a date for payment as soon as possible.

Cash balances decreased by approximately £151,000 during the quarter. Interest received totalled £21,000. Dividends paid totalled £114,000. Legal expenses totalled £47,000. Other liquidation expenses totalled £11,000.

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

Cash Position

Attached is the summary of cash balances held at 30 September 2018.

Cash balances decreased by approximately £151,000 during the quarter. Interest received totalled £21,000. Dividends paid totalled £114,000. Legal expenses totalled £47,000. Other liquidation expenses totalled £11,000.

Statutory Interest

As previously advised, there will be a hearing at the Isle of Man High Court on 30 October 2018 to consider matters relating to statutory interest. There will be a further announcement on this website once the Court’s judgment has been received. Once the decision of the Court is known, it should also be possible to set out the timetable for the final distribution and the completion of the liquidation.

Click here for Cash position

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

Report to Creditors

Attached is a Report to Creditors for the period from 10 January 2018 to 9 July 2018.

Click here for Report to Creditors

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

Notice to Unsecured Creditors regarding Statutory Interest

Creditors of KSFIOM who have proved their debts have now received distributions equating to 100p in the pound.

Limited surplus assets remain in the liquidation of KSFIOM, from which statutory interest can be paid to its unsecured creditors. A direction that Section 23(4) of the Bankruptcy Code 1892 applies to the payment of statutory interest to unsecured creditors in the liquidation of KSFIOM was issued by His Honour Deemster Corlett in the Isle of Man High Court on 16 June 2017 and published on this website on 28 June 2017.

However, a number of unsecured creditors of KSFIOM claimed in the Early Payment Scheme and/or the Early Payment (No. 2) Scheme (collectively “the EPS”) administered by the Isle of Man Treasury and/or in the Depositors Compensation Scheme (“DCS”) managed by the Isle of Man Financial Services Authority.

In return for payments from the EPS and/or the DCS such unsecured creditors assigned their rights to prove in the liquidation of KSFIOM to the Treasury and/or the DCS.

The Liquidator has made an Application to the Isle of Man High Court dated 3 July 2018 (“the Application”), seeking directions that he should pay statutory interest to the DCS in respect of unsecured creditors who assigned to the Treasury and/or the DCS their right to prove in the liquidation of KSFIOM in return for EPS/DCS payments.

A copy of the Application as filed with the Isle of Man High Court is attached below, together with the following supporting documents:

  1. the Witness Statement of the Liquidator dated 3 July 2018, with exhibits
  2. the Skeleton Argument filed on behalf of the Liquidator in support of the Liquidator’s Application (please note that copies of the authorities referred to in the Skeleton Argument are not attached, but can be provided upon request).

The directions sought from the Court by the Liquidator with regard to the payment of statutory interest, and the assignments of the right to prove in the liquidation of KSFIOM made to the Treasury and the DCS, are set out at paragraph 1.1 to 1.1.1.4 in the Application.

At a hearing before His Honour Deemster Corlett held on 1 August 2018 the Deemster gave a direction that the unsecured creditors of KSFIOM should be given notice of the Application by placing a copy of it upon the KSFIOM website, together with the Witness Statement and Skeleton Argument, and that any unsecured creditor of KSFIOM who wishes to be made a defendant to the Application could apply to do so, provided that they file with the Court an application to be made a defendant to the Application by 4pm on 24 September 2018. Thereafter, any unsecured creditor who has applied to be made a defendant must file a defence, any witness statement upon which they wish to rely and their Skeleton Argument, within the timetable set out at paragraphs 3 to 6 of the Deemster’s order, a copy of which is also attached below. The Application has been listed for hearing at 10.00am on 30 October 2018, when one day has been set aside for the hearing.

Click here for Court Order 1 August 2018

Click here for Application Notice

Click here for Skeleton Argument

Click here for Witness statement

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