Some Thoughts on the SL's '6 Monthly Progress Report of 9.7.2018

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
  • Offline
Posted: Sat, 01/09/2018 - 19:06

Hi Folks,

Some thoughts on the SL’s ‘6 Monthly’ Progress Report (9.7.2018).

Are we finally getting there after a few false starts- it seems so. Main thing in this report might be the last dividend paid out by around the end of November 2018 (with a caveat of course). The other main point being the court hearing regarding matters concerning the DCS/Early Payments Schemes on 30th October 2018 - in other words ‘the caveat’. So, having read the latest report I now detail my few thoughts on it below. If I have missed points or disregarded some points that are important to others I apologise. But I see no point in highlighting matters written about so often by myself over the past few years.


  1. Introduction - Page 6

3.2 - “The Liquidator had applied to the Court for further directions in respect of matters which needed to be dealt with in order to make the final distribution and bring the liquidation to a close”. The Deemster’s judgement was delivered on 16th June 2017.

3.3 - The Liquidator further applied to the Court on 3rd July for further directions in respect of matters which needed to be dealt with in order to make the final Distribution and bring the Liquidation to a close. These matters related to the Depositors Compensation Scheme and the Early Payments Schemes. The Liquidator was 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. The Court hearing will be heard on 30th October 2018.

3.4 - It is intended that one further dividend will be paid to creditors in respect of each class of interest. It is expected to be paid around the end of November 2018. Any delay in the resolution of the proceedings noted in 3.3 above would most likely delay the payment of the dividend..

Page 6/7 - 4. - Cut off date fixed for Claiming in the Liquidation

4.1 - Cut off date by which Creditors must prove their debts in the Liquidation of KSFIOM has now been fixed by the IOM High Court as 16th November 2018.

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

 4.3 - However those who have not yet proved their debts need to do so by 16th November 2018 or they will be excluded from sharing in the dividends paid to creditors from the assets of KSFIOM recovered by the Liquidator.

 4.4 - It is emphasised that in order to have their proof of debt admitted by 16th November, creditors must file their proof of debt with the Liquidator by 5th September 2018.

 4.5 - Reason for 5th September date is if the 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 IOM. But any appeal must be lodged within 28 days of the decision of the Liquidator to reject the proof of debt.

 4.6 - The 5th September 2018 date is important, in order that if initially rejected by the Liquidator the appeal process can be concluded by the cut off date 16th November 2018.

 4.7 - Where creditors have filed a proof of debt which has not yet been accepted by the Liquidator because the Liquidator has requested further information or evidence this information should also be supplied by 5th September 2018 to enable the Liquidator to decide whether to admit the proof of debt based on this information/evidence and to allow the creditor sufficient time to appeal if the Liquidator decides not to admit the proof of debt.

My apologies for the formal language copied from the Report in Section 4, but I was concerned that I put across the actual language used by the Liquidator in this very important section of the Report.

Page 7 - 5 - Next Report

5.1 - We can expect a further formal Report covering the 6 months period to 9th January 2019 or the completion of the Liquidation if earlier. Liquidator will continue to post updates on the website on a regular basis and when there are any material developments.

  1. Report on Liquidation from 10th Jan 18 - 9th July 2018

Page 10 - 2.1 - £19.6m Cash in Hand at 9.7.2018

Page 13 - Parental Guarantee – All amounts receivable from Khf have now been realised.

Page 13 - Investigation – This is in relation to the Bank’s Directors re the ‘winding up order’. Based on the latest advice on these matters, it appears SL now saying, most unlikely that there would be any value for Creditors in pursuing the potential claims.

Page 14 – To assist Life Companies and their Policyholders, the SL approached and received approval from the IOMC to accept assignments from Life Companies on behalf of their Policyholders without the need for a costly Court Order. Given how close we are to the end of the Liquidation, no further assignments will be accepted

Page 14 - re Unresolved & Unclaimed. SL still showing £2.5m Unresolved and £1.5m Unclaimed. All anticipated claims are reserved for in the dividend calculations.

Page 15 - Liquidation costs - There is a spend so far of £25.7m excluding VAT, compared to the previously estimated overall total of £24.3m. Future Liquidation costs will be determined prior to the payment of interest and the finalisation of the Liquidation.

Page 16 - Liquidation costs - SL states ‘time costs’ only paid up to 31.3.2017 ), latest date to which costs have been submitted). So, it would appear to me, that ‘time costs’ plus other costs are still due to be paid from 1.4.2017 up until the present and beyond, to the finalisation of the Liquidation. If I am correct this would affect the current cash available for distribution. This might be mitigated if any cash is recovered from current ‘Unresolved’ (£2.5m) and ‘Unclaimed’ (£1.5m) in favour of the SL (and therefore the Liquidation).

The concluding bits to be seen to are;

1.Approval by the Court on directions re the DCS/Early Payments Schemes
2.Payment of final distribution hopefully by end of November 2018

The above are the comments I felt were worth making. I will update parts of my background data in readiness for the SL’s Quarterly Update due at end of September 2018. So, hopefully the Liquidation will be concluded by the end of November 2018, or shortly thereafter.

Take care,

And God Bless

Gordon 45

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