Cut-Off date fixed for claiming in the liquidation

The cut-off date by which creditors in KSFIOM (including depositors who have not claimed in the Depositors’ Compensation Scheme) must prove their debts in the liquidation of KSFIOM has now been fixed by the Isle of Man High Court as 16 November 2018.

A copy of the Order of Court dated 10 July 2018 is attached below, and the attention of creditors is particularly directed to Schedule 1 of the Order.

Creditors who have already had their proof of debt admitted by the Liquidator do not need to do anything further.

However, creditors who have not yet proved their debts need to take urgent steps to do so, because if their proofs of debt are not admitted by 16 November 2018 they will be forever excluded from sharing in the dividends paid to creditors from the assets of KSFIOM recovered by the Liquidator.

It is emphasised that in order to have their proof of debt admitted by 16 November 2018, creditors must file their proof of debt with the Liquidator, at the address set out below, by 5 September 2018.

The reason that proofs of debt must be filed by 5 September 2018 is that if a proof of debt is not admitted by the Liquidator, then the creditor has a right to appeal against the Liquidator’s decision to the High Court of Justice of the Isle of Man under Rule 85 of the Companies (Winding-Up) Rules 1934, but any appeal must be lodged within 28 days of the decision of the Liquidator to reject the proof of debt.

The effect of this is that if a creditor wishes to prove their debt by the cut-off date on 16 November 2018, they must have filed their proof of debt with the Liquidator by 5 September 2018, in order for any appeal process to have concluded if the Liquidator should reject the proof of debt.

With regard to creditors who have filed a proof of debt which has not yet been accepted by the Liquidator, because the Liquidator has requested further information or evidence, such information or evidence should also be supplied by 5 September 2018, to enable the Liquidator to decide whether to admit the proof of debt in the light of the further information and/or evidence, and to allow the creditor sufficient time to appeal if the Liquidator decides not to admit the proof of debt.

A specimen proof of debt form is also attached below.

Click here for Court Order

Click here for Proof of Debt

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.

Cash Position

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

Cash balances increased by approximately £3,000 during the quarter. Loan related fees received totalled £38,000. Legal expenses totalled £12,000. Other liquidation expenses totalled £23,000.

Click here for Cash Position

Final date for proving claims

An announcement will be made on this website in the next few days regarding the final dates for the submission and agreement of claims in the liquidation.

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.

Cash Position

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

Cash balances decreased by approximately £149,000 during the quarter. Income totalled £12,000. Legal expenses totalled £153,000. Other liquidation expenses totalled £8,000.

Click here for Cash Position

Finalisation of Claims

I have recently rejected approximately 100 claims which were considered to be invalid. The time for those claimants to object to the rejection of their claims has now passed. I will shortly be applying to Court to set a final date for proving – this will be the final deadline after which no further claims will be considered. The relevant notice will be advertised and posted on the website. Once this deadline has passed, we will begin the process to pay out the final distribution.

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 2017 to 9 January 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

Cash Position

Attached is the summary of cash balances held at 31 December 2017.

Cash balances increased by approximately £4,237,000 during the quarter. Loan interest and repayments totalled £4,063,000. Other income totalled £283,000. Legal expenses totalled £78,000. Other liquidation expenses totalled £31,000.

Click here for Cash Position

Loan Book

Attached is the summary of the loan book position at 31 December 2017.

During the quarter to December 2017, the final remaining loan was repaid in full. The loan tables shown have been converted to Sterling using exchange rates as at 31 December 2017.

Click here for Loan Book

Finalisation of the liquidation

Now that the final outstanding loan has been repaid, the only potential further assets are legal claims. I am consulting with lawyers on the merits of continuing those claims, which will need to be determined before bringing the liquidation to a close. I will explain more and set out details of the process in the next six monthly report to creditors which will be prepared shortly.

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 2017.

Cash balances decreased by approximately £95,000 during the quarter. Loan interest and other income totalled £13,000. Catch-up dividends were £0. Liquidator’s fees were £50,000 and other liquidation expenses were £58,000.

Click here for Cash Position

Loan Book

Attached is the summary of the loan book position at 30 September 2017.

There were no redemptions in the loan book during the quarter to September 2017. The loan tables shown have been converted to Sterling using exchange rates as at 30 September 2017.

Click here for Loan Book

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 2017 to 9 July 2017.

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

Cash Position

Attached is the summary of cash balances held at 30 June 2017.

Cash balances increased by approximately £416,000 during the quarter. Loan interest and other income totalled £754,000. Catch-up dividends were £0. Liquidators fees totalled £223,000. Other liquidation expenses totalled £115,000.

Click here for Cash Position

Loan Book

Attached is the summary of the loan book position at 30 June 2017.

There was a partial redemption of £264,000 in the loan book during the quarter to June 2017. The loan tables shown have been converted to Sterling using exchange rates as at 30 June 2017.

Click here for Loan Book

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

Interest

I can confirm that Deemster Corlett has handed down his decision in respect of the calculation of interest. A copy of the signed judgment is attached below. It has been determined that interest should be calculated using the insolvency rules, rather than contractual rates, for the whole period from 9th October 2008 until the date of distribution and then divided pro rata amongst the unsecured creditors.

Click here for Judgment of Deemster Corlett

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 March 2017.

Cash balances increased by approximately £173,000 during the quarter. Loan interest and other income totalled £316,000. Catch-up dividends were £42,000. Other liquidation expenses totalled £101,000.

Click here for Cash Position

Loan Book

Attached is the summary of the loan book position at 31 March 2017.

There was a partial redemption of £257,000 in the loan book during the quarter to March 2017. The loan tables shown have been converted to Sterling using exchange rates as at 31 March 2017.

Click here for Loan Book

Interest

Further to my previous updates on this matter, I can confirm that a Court hearing took place as scheduled on Thursday 23 March 2017. The Deemster reserved his judgment and I will post an update on this website as soon as the judgment is issued.

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