There was standing room only in court 1 as proposals were unveiled for Tynwald to approve an emergency fund to help Kaupthing depositors facing hardship with the loss of their life savings.

Attorney General John Corlett insisted this could not be called a hardship fund as it would apply to all the Kaupthing creditors.

He said it could be funded either from assets already recovered by the provisional liquidator or from the £150 million of taxpayers' cash already approved by Tynwald for the depositors' compensation scheme - or possibly new money in addition to that £150 million.

The court heard that the Manx government had appointed global business advisory firm Alix Partners to look at alternatives to a traditional winding up of Kaupthing Singer and Friedlander (IoM).

Theses included the rescue or sale of the bank and/or a salvage by way of restructuring or recapitalisation that would be led by Treasury and guarantee a minimum return for depositors 'much in excess' of what they would get back via the compensation scheme.

A third option would be a restructuring plan combining bank recoveries with third party funding.

In an affidavit read out in court, Alix Partner's David Lovett said: 'If a restructuring plan can be put in place then I am confident that depositors will be better off than if the court simply makes a traditional winding up order.'

He said Treasury was prepared to recommend to Tynwald that a scheme be set up to enable a payment on account to be made to depositors as soon as possible.

And he argued that while there were many uncertainties and promises were 'just not possible', if the winding up order was granted then 'we may never know if a more satisfactory solution could, with patience, have been achieved.'

Deputy Deemster Andrew Corlett granted the adjournment until January 29, saying he was taking into account the wishes of the vast majority of creditors.

WHAT DO YOU THINK?
Send your comments to newsviews@newsiom.co.im

YOUR COMMENTS

The only thing that politians care about is public opinion. Many KSF IOM depositors are in appalling situations as a direct result of Alastair Darling triggering the collapse of KSF UK. There is also a minor campaign by UK governnment apologists in sections of the media to class IOM depositors as tax avoiders who got what they deserved. And Alastair has promised a 'long hard look' at the IOM status. Whilst he is at it perhaps he can also have a 'long hard look' at the annual reports of every major UK plc and what exactly those sudsidiaries in the Cayman Islands, Bermuda and the Dutch Antilles do, but I doubt he will. I believe a mass hunger strike by KSF IOM depositors outside the locked gates of Downing Street would soon focus the mind of Alastair Darling and Gordon Brown.
GH

To wait another 60 days and pay the over inflated bills of PWC and now probably Alix Partners - This is not the view of the vast majority of depositors. They should kick PWC out and return to the court every 14 days. Regards
AL

2 months delay. That is ridiculous. Then what another 2 months? I had some savings in KSF, and need some money now before I lose my house.
I hope that if a solution is found sooner, it will be acted upon rather than waiting. I have no faith in a government run by a man with such a ridiculous moustache!
JQ

Excellent news for all depositors, but what can be done with PWC and their lack of performance & information with respect to those depositors, although they appear to have informed the court to the contrary, application for joint liquidators??? depositors informed via website -- try asking any DAG site member if they were informed.
LS

Being a depositor with the possibility of losing my life savings I am heartened by the news that the court have granted a further 60 days in the hope to sort out the problems of KSFIOM. I do have one major concern and that over the role of the provisional liquidator Mr. Mike Simpson. He needs to be questioned over why the KSFIOM depositors are not being informed of the KSFIOM status and why he proposes to employ another PW employee to be paid for out of KSFIOM funds.
DEREK WILLIAMS

The 60-day ajournment is good news for those with substantial savings, but leaves small savers twisting in the wind. A good idea might be to use available funds to pay out up to £20,000 per depositor now allowing those without other sources of cash to keep afloat and taking heat off the FSC from the very small savers.
MACB

Without even the outline of a rescue plan this further delay only serves to frustrate depositors, undermine the reputation of the IoM, and line the pockets of the consultants. No more delays – we need action.
RB

WHAT DO YOU THINK!!!!! WHEN YOUR BANK A/C HAS BEEN UNACCESSABLE FOR 2 MONTHS, AND YOUR NOW INFORMED OF A 60 DAY ADJOURNMENT. YOU HAVEN'T HAD ACCESS TO YOUR LAST 2 PAYCHECKS. AND YOUR CREDIT CARD YOU'VE HAD FOR 20 YEARS GIVES YOU THIS REPLY.....
'Thank you for your email.Unfortunately on this occasion I am unable to increase your credit limit. In the current climate of increased personal debt, it is important that we do what we can to make sure that customers do not borrow more than they can afford. As well as assessing your account history, we also consider how you manage any other credit accounts you have outside the Barclays group. If you would like to review your account again in the future, please contact us again in six months.'
WHAT DO YOU THINK, I THINK OF BANKING IN IOM ?????
DS

Despite being so far into this debacle, I still feel incredulous that whatever the UK Government's intentions were around the freezing of Icelandic assets, the plain fact is that ALL of the depositor's money is available in the electronic vaults of KSF UK. The UK Treasury has only to return what is, after all money belonging to KSF IOM depositors and this whole sorry mess goes away. Ask yourself, would the UK Government be so unhelpful and so bullish if it were the USA's money or perhaps China's? No, they'd be utterly terrified of someone bigger and stronger. This is the schooyard bully played out at the macro level.
KM

That is good news insofar that it should see more funds retrieved. But the hardship people need to have access to cash now. PWC have done an appalling job so far – 60 days of no information – the only posts have said 'we are working on it' and nothing else
MARTIN WILLINGALE

I am totally disgusted at having to wait another 60 days. I am also hurt that I am being tarnished a tax dodger. I live in Spain so I am unable to open savings accounts. I also cannot hold a lot of savings in Spain due to harsh tax laws e.g. no tax exemption for spouse on death. So, consequently I have no choice but to look at the likes of the IOM. I declare all income and pay all tax. So thank you Mr Darling for robbing me. No wonder the UK is in such a state. All you have to do is look at the TV performance of this guy, he is a total idiot. What a state, work and save hard all my life, to get stuffed by the UK Govt. GB, Spain

The 60 days postponement is good news, although I sympathise with the depositors with investments below the £50,000 IoM compensation offer. It begs for a two tear system to be set up to pay out to the depositors up to that level. For the depositor above £50,000 like myself, it allows time for further negotiations by the IoM and UK Governments, with Kaupthing hf and the Icelandic Government which are the responsible for the 100% guarantee. In a letter from the IoM Treasury, I have been informed that the IoM had this assurance from the UK Government. I am also quite aghast at Alistair Darling's view that depositors in Kaupthing are paying lower taxes. In my case, any likely losses are the proceeds from selling my company on retirement, my life's work and on which I have paid full tax to the UK Treasury this year. It is therefore quite galling that the Chancellor has no sympathy for IoM investors and I have written to him in that respect. Ultimately the UK Government has caused this fiasco and ultimately they have responsibility to get us out of it.
TOTALLY DEVASTATED

Having waited all this time we seem to be no further on, particularly with regard to people in desperate need. There seems to be no sense of urgency. They say the best form of defence is attack and that is why Mr Darling continues to insult us with comments like tax dodgers. For those in great need I would suggest the only people who have any security these days are those on benefits. We hard working, tax paying, savers don't know all the wrinkles but it seems you can have all the things you have worked hard for all your life, provided by the State. I believe you can lie on the beach and have your benefits sent to you. Perhaps we should find out what we are entitled to rather than make ourselves ill.
ER. conned

To delay the liquidation is definitely a good idea, but for so long without a publicly open managed resolution program to ensure we have a solution by the time of the next review is not good enough. But what really makes me angry is that the real perpetrators of this mess - The Miracle Men, Darling & Brown - are getting off Scott Free and they will not come clean on the affair. It is plainly obvious to all those concerned that the UK Government's actions in the UK directly led to the failure and subsequent administration of Kaupthing Singer & Friedlander UK (KSF UK) which up to then had been a solvent and liquid entity and thereby prevented KSF IoM from accessing funds that were rightfully its own - it does not take a genius to see that the UK government are morally obliged to reinstate or repatriate those KSF IoM funds. Then we can rest happy and vote Labour next time (maybe).
RW

My! What a revelation the statement from the courts regarding the KSF (IoM) collapse. As I quoted this morning, this is governmental bull excrement!! At this rate all depositors will be dead before anything is resolved. That would please all parties except the deceased! Perfect example of why a democracy will never win a war. What will happen on 29.1.2009, (erroneously referred to as 29 Jan 2008 in the statement on the KSF web site-(can't they get anything right?))....... let's defer the judgement until 29 Jan 2014? As I stated earlier.....it's your banking industry that's going to suffer. I would think the IoM should make a stand before all your bamks disappear. Regards,
JOHN YATES

The IoM is doing its best under trying circumstances. Meanwhile the UK government has shown a cynical disregard for the mental health and welfare of its citizens. There are aid workers stranded overseas penniless, pensioners devastated, and families crippled by mortgage obligations they cannot meet. But these sad 8,000 depositors, of which I am one, do not have a large enough voice to create a political threat, and since there is no political gain in helping us we are discarded. As for this postponement it sounds hopeful, but if it doesn't come off I will just have to earn my savings of the last decade again. I won't be defeated by a daft simpleton like Darling. Regards,
NEWMANXFAN

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