Following the meetings of creditors on 19 May 2009, a report has
been filed in the Isle of Man High Court today by the Joint
Liquidators Provisionally confirming that the Scheme of
Arrangement, as proposed by the Company and the Treasury of the
Isle of Man, failed to be approved by two of the three meetings of
classes of creditors.
A significant number of creditors voted on the proposal, with
Forms of Voting and Proxy received from around the world. The
following votes, as reported by the Chairman, have been reported to
the Isle of Man High Court today:
|
|
Number
|
Total |
Value |
Total |
|
|
For
|
Against
|
|
For
|
Against
|
|
| Class
1 |
1,922 |
376 |
2,298 |
49,577,532.04 |
8,633,579.67 |
58,211,111.71 |
| Class
2 |
825 |
935 |
1,760 |
406,222,625.41 |
215,593,464.58 |
621,816,089.99 |
| Class
3 |
13 |
1 |
14 |
309,860.82 |
3,000,000.00 |
3,309,860.82 |
The Scheme of Arrangement has therefore not been sanctioned by
the Scheme Creditors, as classes 2 and 3 failed to reach the
required 75% in value of those present and voting for the Scheme.
Class 2 also failed to achieve a majority in number of those
present and voting for the Scheme.
At the next hearing in the Isle of Man High Court on 27 May
2009, the winding up petition is due to be heard and the Joint
Liquidators Provisionally will support the making of a winding up
order. It is anticipated the Company will be placed into
liquidation on that date.
Following the hearing, and if a winding up order is granted, the
Provisional Liquidators, as appointed, will focus on ensuring
dividends are paid to creditors as soon as practicable. Proof of
debt forms will be issued as quickly as possible to creditors to
enable them to lodge their claims in the liquidation, with the aim
of paying the first dividend within three months of the winding up
order being granted.
Postal concerns
The Liquidators Provisionally have been contacted by a small
number of creditors stating that the Scheme Documents did not
arrive by post. I am disappointed that the papers did not reach all
creditors shortly after posting. However, in addition to being
posted, notices for the Scheme meetings were placed in the Manx and
international press and the documents were all made available on
this website. I would like to draw to the attention of creditors
the two affidavits which confirm the printing and postage process
including the fact that, where required, documents were issued by
airmail. I confirm that original forms of proxy and voting were
received from all over the world.