IoM Kaupthing depositors to get first payment next week
From News Aug 25 2009 BY: Helen Burggraf
, Contributing Editor
, International Adviser
Depsitors caught by last October’s collapse of the Isle of Man’s branch of Kaupthing Singer & Friedlander will receive their first dividend from the bank’s liquidator next Friday.
Depsitors caught in last October’s collapse of the Isle of Man’s branch of Kaupthing Singer & Friedlander will receive their first dividend from the bank’s liquidator next Friday, according to an announcement on the bank’s website.
They are to receive 22.1p in the £1 - a sum “far higher than the 14.5% originally anticipated” a report on the Isle of Man Today’s website noted.
In a statement, the bank's joint liquidators said the payout to bank depositors is likely to rise with the receipt of cash expected "during the course of the next two weeks" as more bank assets are recovered.
As reported by International Adviser last month, Kaupthing Singer & Friedlander Isle of Man (KSFIoM) depositors are also due to receive payments in September from the government’s Depositors’ Compensation Scheme (DCS).
The statement, issued through the KSFIoM website today, added that a further announcement will be made when the level of the first distribution has been finalised, as well as a further update on the progress of the liquidation.
Up to £50,000
Under a measure approved by the Manx parliament, the depositors compensation scheme will pay up to a maximum of £50,000. The government has said this would allow for more than 75% of savers to receive their entire deposit back.
Kaupthing Singer & Friedlander was placed into liquidation on 27 May this year and the DCS activated after a so-called Scheme of Arrangement, proposed by the government as an alternative to the DCS, was voted down by the bank’s depositors.
As previously reported, some £85m has already been paid to depositors under an early repayment scheme, giving up to £10,000 each to depositors.