12 FEBRUARY 2019

Report to Creditors

Attached is a Report to Creditors for the period from 10 July 2018 to 9 January 2019.

PDF Report to Creditors

Destruction of pre-liquidation data

I applied to Court for permission to destroy all pre liquidation data, as in my view it is no longer required. The cost of preserving the data, potentially for six years after the end of the liquidation, would be significant and so impacts the calculation of the final distribution. The following order was issued by the Court on 14 January 2019.

PDF Court Order

The order permits me to destroy KSFIOM's books, papers and electronic data following payment of the final dividend in the liquidation, and to destroy my Liquidator's books, paper and electronic records relating to KSFIOM after 5 years have expired following the date of dissolution of KSFIOM. As reported in my previous update the ability to destroy the considerable amounts of pre-liquidation books, papers and electronic data will increase the amount of cash I am able to distribute as the final dividend.

Final Dividend

It is intended that one further dividend will be paid to creditors in respect of each class of interest. The timing and amount of the dividend cannot yet be determined with certainty, as I have received several freezing orders in respect of former KSFIOM customer accounts. The problem that I have is that the freezing orders relate to accounts on which I have received no proof of debt, which means that until they are resolved I cannot quantify the final amount available for distribution to unsecured creditors. The total amount involved is significant to the amount available for distribution.

Creditors who have already had their proof of debt admitted by the Liquidator do not need to do anything further unless they claimed under the Early Payment Scheme and/or the Early Payment (No. 2) Scheme and subsequently received dividends direct from the Liquidator. These claimants will now receive their final dividend from the DCS Administrator, and will need to provide the DCS Administrator with such information as he requires to be able to make payments.

Contact details for the DCS Scheme Administrator are

  • Website https//www.dcs.im/
  • Email: dcs@kpmg.co.im
  • Phone: +44 1624 625 680
  • Postal Address: Isle of Man Depositors' Compensation Scheme, PO BOX 201 , Douglas, Isle of Man, IM99 1TR

If you did not claim through the EPS or DCS, you will receive your final dividend direct from my team. As the team has not made dividend payments since 2014, we would ask you to check that the bank accounts that we have on file are still open. If you need to advise us of any changes, please contact us at the address below as soon as possible. We will need a letter (not an email) advising us of any changes and will need to contact you to check authenticity of any changes requested. If you do not advise us of changes and final dividend payments are returned, this will inevitably lead to delays in you receiving your payments.

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