Kaupthing investors kept away from their refunds

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2009-09-05 23

Investors who bought offshore bonds through the failed bank Kaupthing Singer & Friedlander on the Isle of Man fear they will get none of their money back, despite the liquidator making its first payment last week.

All depositors were paid 24.8% of their investments on Friday, according to the liquidator, Mike Simpson of Price Waterhouse Coopers, and the Isle of Man Treasury. Savers with individual deposit accounts can expect to receive further compensation on top of the liquidator’s payment, up to £50,000, under the Isle of Man’s compensation scheme.

Prospects are less clear for the thousands who invested indirectly in KSF through offshore bonds, who are not eligible for the island’s compensation scheme.