Brooks added that the regulator continues to have confidence in Wilson’s capabilities and ability to wind up Eco and it did not support the appointment of a new liquidator.
He said: “The evidence has failed to explain how there would be a return for investors by a possible refinancing. The [IoMFSA] shares Mr Wilson’s concerns in respect of the proposed refinancing both in terms of its credibility and also the extent to which it will benefit investors rather than those behind SAL.”
Concerns were also raised the Simpson could be viewed as being too close to Bourbon and other creditors following their vocal support of his appointment.
Judgment
On 14 July, Deemster Doyle admitted during judgment that he was “concerned over Mr Wilson’s previous dealings with, and experience of, Eco and those associated with it, such as Mr Bourbon and Mr Wiseman”.
“Moreover, Mr Wilson appears to have had a very close relationship with the [IoMFSA] in respect of Eco.”
He continued: “It is clear that the [IoMFSA] wants a ‘speedy’ liquidation under the control of Mr Wilson and do not appear attracted to any possible refinancing/restructuring. If an expeditious liquidation is possible then so be it, but the liquidator may want a reasonable time, not to exceed three months, to see if any proposed offers to assist may be finalised in the best interests of Eco and in the public interest.”
Doyle was not persuaded that the appointment of Simpson would incur unnecessary additional costs of unjustifiable further delay.
“My main concerns over the appointment of Mr Wilson as liquidator relate to his inappropriate Eco ‘baggage’, which has now been highlighted in detail in the evidence filed and submissions made on behalf of Mr Bourbon. Mr Wilson, in the particular circumstances of this matter, is simply too close to Eco and the [IoMFSA] to be the most suitable candidate as liquidator.”
He added: There is no suggestion that Mr Simpson will simply be Mr Bourbon’s puppet. There is no suggestion that Mr Simpson will not properly undertake his duties as liquidator. There is no suggestion that Mr Simpson will not investigate the affairs of Eco and the activities of Eco’s officers and take whatever action may be necessary.”
Doyle concluded: “I should also add that I do not doubt the integrity or competence of Mr Wilson as a liquidator. On balance however, I have concluded that it is better both for Eco and the public interest that Mr Wilson should not be appointed liquidator in view of his past Eco “baggage” obtained on behalf of the [IoMFSA].
“I have concluded that it would be best for Mr Simpson to be appointed.”
