15 AUGUST 2018

Notice to Unsecured Creditors regarding Statutory Interest

Creditors of KSFIOM who have proved their debts have now received distributions equating to 100p in the pound.

Limited surplus assets remain in the liquidation of KSFIOM, from which statutory interest can be paid to its unsecured creditors. A direction that Section 23(4) of the Bankruptcy Code 1892 applies to the payment of statutory interest to unsecured creditors in the liquidation of KSFIOM was issued by His Honour Deemster Corlett in the Isle of Man High Court on 16 June 2017 and published on this website on 28 June 2017.

However, a number of unsecured creditors of KSFIOM claimed in the Early Payment Scheme and/or the Early Payment (No. 2) Scheme (collectively “the EPS”) administered by the Isle of Man Treasury and/or in the Depositors Compensation Scheme (“DCS”) managed by the Isle of Man Financial Services Authority.

In return for payments from the EPS and/or the DCS such unsecured creditors assigned their rights to prove in the liquidation of KSFIOM to the Treasury and/or the DCS.

The Liquidator has made an Application to the Isle of Man High Court dated 3 July 2018 (“the Application”), 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.

A copy of the Application as filed with the Isle of Man High Court is attached below, together with the following supporting documents:

  1. the Witness Statement of the Liquidator dated 3 July 2018, with exhibits
  2. the Skeleton Argument filed on behalf of the Liquidator in support of the Liquidator’s Application (please note that copies of the authorities referred to in the Skeleton Argument are not attached, but can be provided upon request).

The directions sought from the Court by the Liquidator with regard to the payment of statutory interest, and the assignments of the right to prove in the liquidation of KSFIOM made to the Treasury and the DCS, are set out at paragraph 1.1 to 1.1.1.4 in the Application.

At a hearing before His Honour Deemster Corlett held on 1 August 2018 the Deemster gave a direction that the unsecured creditors of KSFIOM should be given notice of the Application by placing a copy of it upon the KSFIOM website, together with the Witness Statement and Skeleton Argument, and that any unsecured creditor of KSFIOM who wishes to be made a defendant to the Application could apply to do so, provided that they file with the Court an application to be made a defendant to the Application by 4pm on 24 September 2018. Thereafter, any unsecured creditor who has applied to be made a defendant must file a defence, any witness statement upon which they wish to rely and their Skeleton Argument, within the timetable set out at paragraphs 3 to 6 of the Deemster’s order, a copy of which is also attached below. The Application has been listed for hearing at 10.00am on 30 October 2018, when one day has been set aside for the hearing.

PDF Court Order 1 August 2018

PDF Application Notice

PDF Skeleton Argument

PDF Witness statement

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