Accepting the £1,000 loan from the IoM Government may jepordise your rights

  • Anonymous
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Posted: Fri, 13/02/2009 - 16:32

I have just been speaking to a solicitor on the Isle of Man who is familiar with the Kaupthing Singer and Frieldnader situation. I was asking about the £1,000 loan from the Government which I understand they are now thinking of increasing to £10,000 per account. He said be very careful, and read the small print as by accepting it you may sign away your rights to vote on which way to go in the future. I.E. SOA or DCS. The Government may have your vote as to which route they want to take and what they want to do.

We have not taken the £1,000 although it would have come in handy, just for that reason. We think we have been screwed once already by the IOM Government so we don't want to take any more chances.

Just thought that anyone who is undecided what to do, read it and fully understand what you are signing.

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1000k & 10000k

  • Anonymous
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  • Sat, 14/02/2009 - 08:03

The 1000k EPS will not effect anyone rights as it says in the guidance notes

Nevertheless it is very important that the 10000k payment if passed must also have a specific clause saying that it will not jeopardise our legal situation to pursue the rest of our money in anyway including our voting rights.

This is why we need legal advice.


Accepting EPS

  • Anonymous
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  • Sat, 14/02/2009 - 08:33

By accepting £1,000 and then £10,000 is giving IOM government more voting value for SOA which is the route they are determined to take us.

Are they so hard faced to send us papers for a vote when they know already they have over 50% value vote ? See JKK entry.


Voting Rights

  • Anonymous
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  • Sat, 14/02/2009 - 02:28

According to Gabriel Moss QC's affidavit, the vote required is 75% by value---anyone know the maths?


Now I see why - Affidavit Gabriel Moss

  • Anonymous
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  • Sat, 14/02/2009 - 06:08

Now I see clearly why we were offered a paltry £1,000 and why they are trying to get us to accept a further £10,000 !!

Paragraph 52 of Gabriel Moss Affidavit - voting is based on value of creditors not numbers. So IOM government have bought votes with a measly £1,000 !


merlina - Vote requires

  • Anonymous
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  • Sat, 14/02/2009 - 17:52

"a majority in number representing three-fourths in value" as stated in the paragraph you quote. The vote is not based on value alone.


Majority

  • Anonymous
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  • Sun, 15/02/2009 - 10:20

Thanks for the correction---so 50.0000001% by number and 75% by value---seems like DAG are close to or possibly over 25% by number--value????no idea.my guess is 100million at least.
DBS may have more but they do not seem to be very active--maybe I missed something.
Do Insurance companies have 1 vote each?


There is nothing

  • Anonymous
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  • Fri, 13/02/2009 - 18:55

What clause are you referring too ?

Please could you identify?

There is nothing in the form as far as I can see that says you are signing away any rights other than that to the extent of the payment.

In fact this was mentioned in the guidance notes that accompanied the application form

'Will this effect any other rights or entitlements in the future?

Receiving a payment will have NO impact on your rights or entitlement under either the Account
Holders Compensation Scheme or liquidation. In particular, receiving a payment under the Early
Payment Scheme will have NO impact on your rights to vote in relation to any restructuring or
scheme of arrangement proposed by the Provisional Liquidator/Liquidator.


EPS - Forfeiting Your Rights

  • Anonymous
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  • Fri, 13/02/2009 - 19:38

The rights you are signing away are not mentioned on the application form. Adopting an SoA requires votes of more than 50% of depositors representing at least 75% of the total value of deposits. If you had £30,000 in the bank and you accept £10,000 EPS, you still have the right to vote but the monetary value of your vote will only be £20,000 not £30,000.

The IoMG is counting on buying this way over £100 million of our voting rights. If the insurance companies play along, they will already have between them over 50% of the votes by value and are quite likely to push through the scheme, which will give them immunity from legal action and let them put their sticky fingers into our cash.


Jkk If they are not mentioned

  • Anonymous
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  • Sat, 14/02/2009 - 06:29

If they are not mentioned on the application form and the guidance notes specifically say that they will not affect any voting rights they would be laying themselves open to litigation for false representation .


Forfeiting your rights - re: £1,000

  • Anonymous
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  • Fri, 13/02/2009 - 17:23

You are quite right upthecreek. We did read the small print and there is definitely a clause whereby you forfeit your rights.

That's why they have no upped it to £10,000, not enough of us have taken the bait !


Merlina please identify this clause

  • Anonymous
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  • Sat, 14/02/2009 - 06:41

Merlina please can you identify the clause that says that you forfeit your rights?
ie the clause in the small print of the application form not the affidavit that has been issued today.


Bellyup

  • Anonymous
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  • Sat, 14/02/2009 - 07:29

Page 1 of Application Form under Request for early payment. Last paragraph.

"We understand that, as part of an agreement to make a payment under the KSF IOM Early Payment Scheme, the Treasury may require us to assign some or all of our rights to receive payments from DCS, from the Provisional Liquidator, upon any liquidation of KSF, or from any scheme of arrangement in respect of the assets of KSF IOM.

I may have it wrong but I would be interested to hear how you read this para.


I would read it as referring

  • Anonymous
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  • Sat, 14/02/2009 - 07:40

I would read it as referring to payments .

the Treasury may require us to assign some or all of our rights to receive payments from DCS, from the Provisional Liquidator, upon any liquidation of KSF, or from any scheme of arrangement in respect of the assets of KSF IOM.


Not on my forms

  • Anonymous
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  • Fri, 13/02/2009 - 20:21

I agree with bellyup, there is nothing on the forms about forfeiting your rights.

I have a copy of the application form and the guidance notes and cannot find anything like that, apart from the paragraph bellyup mentions, which makes it quite clear that it will not effect our rights or entitlements in the future.

Regarding the £10,000, I didn't think a final decision had been made yet.


Forfeiting your rights

  • Anonymous
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  • Fri, 13/02/2009 - 19:40

At the final outcome you forfeit the right to the £10,000 paid to you in advance but not to anything else.


guidance notes

  • Anonymous
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  • Fri, 13/02/2009 - 19:38

Will this effect any other rights or entitlements in the future?

Receiving a payment will have no impact on your rights or entitlement under either the Account
Holders Compensation Scheme or liquidation. In particular, receiving a payment under the Early
Payment Scheme will have no impact on your rights to vote in relation to any restructuring or
scheme of arrangement proposed by the Provisional Liquidator/Liquidator.