KSFIOM Liquidator 26 Feb 2018: Progress Report to Creditors

Category: Newsflash

The Liquidator's Report to Creditors for the period 10 July 2017 to 09 Jan 2018 is available here

Highlights at 9 Jan 2018
- 100p in the £ dividends paid to creditors
- £946m of assets recovered
- Judgment received on calculation of interest
- Process to finalise liquidation can now commence

Selected extracts from Introduction:
3.2 As set out in Section 3.1 above, the JLs have achieved a return of 100p in the £ with the payment of the tenth dividend on 28 November 2014 based on the claims accepted in the liquidation. This will now allow the Liquidator to pay some interest on the claims. However, the rules for calculating interest in an Isle of Man insolvent liquidation are not straightforward and the Liquidator applied to the Isle of Man High Court for directions. The Deemster’s judgment was delivered on 16 June 2017 and a copy has been placed on the website. The Deemster determined that insolvency rules apply to the calculation of interest, which should be pro rated over the term of the liquidation. The liquidator will shortly be applying to the Court for further directions in respect of matters which need to be dealt with in order to make the final distribution and bring the liquidation to a close.

3.3 It is intended that one further dividend will be paid to creditors in respect of each class of interest. Whilst the timing and amount of the dividend cannot yet be determined with certainty, it is expected to be paid within the next six months.

4.1 There are no formal requirements in respect of reporting to creditors under the Act or the Rules. The Liquidator consults with the Committee as to the timings of reports to creditors but anticipates that the next formal report will cover the six month period to 9 July 2018. In the meantime the Liquidator will continue to post updates on the website on a regular basis and when there are any material developments.

On-going strategy for the liquidation and other matters Now that there are no further assets to be realised, the focus is now on completing the legal steps required to bring the liquidation to a close and making the final distribution to creditors.

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