Final date set for applications to KSF IOM Early Payment Scheme

Treasury has today given advance notice that the last date for eligible depositors to make an application to the Kaupthing Singer & Friedlander (Isle of Man) Limited Early Payment (No. 2) Scheme will be 22 May 2009.

The Early Payment Scheme was originally approved by Tynwald in January 2009 and enabled eligible depositors of KSF IOM to apply for an early payment of up to £1,000 from Treasury. Tynwald subsequently approved an enhancement to the EPS in February, so that the amount of the early payment was increased to a maximum of £10,000.

Treasury has now paid out around £44 million and will continue to make payments until 19 June 2009 in respect of eligible applications received on or before 22 May 2009.

The wind down and closure of the Early Payment Scheme has been planned to enable an orderly handover to either the Scheme of Arrangement or the Liquidation. The results of the Creditors’ voting will be considered on 19 May 2009. The Creditors’ voting on the Scheme of Arrangement will be considered by the High Court on 27 May 2009, if the Scheme of Arrangement has been approved by Creditors. If the Court sanctions it is proposed that the Scheme of Arrangement would be implemented the following day. However, if the Scheme of Arrangement is voted down by Creditors, it is expected that the bank will be put into liquidation around 20 May 2009, or as soon as practically possible: if this happens the Depositors Compensation Scheme would be activated.

If the Scheme of Arrangement is approved by Creditors and sanctioned by the High Court it is currently expected that the first distribution would be paid out around the end July 2009.

Further information about the Early Payment Scheme, including application forms and contact details can be found on the Isle of Man Government website at: http://www.gov.im/cso/faq_gfs.xml