2nd Update from IOM Legal Advocate

2nd Update from IOM Legal Advocate

Author: Diver

There have been a few developments in the IoM which I believe you all should be aware of.

We have been informed by our legal representative on the IoM that on 12 November 2008 Mike Simpson made an application to the Isle of Man Court requesting that another PWC partner from London be appointed alongside him as provisional joint liquidator.

The reasoning behind this appears to be that a London based partner (and this one is very senior) will be required to attempt to recover IoM assets held with KSF UK. The transfer order that was enacted on KSF UK on 8 October prevents any funds being moved from KSF UK back to the IoM without the consent of the UK treasury so it would be logical to have a ‘big hitter’ on our side in any negotiations with the UK authorities.

It should be noted that Simpson informed the court that he had informed depositors of his intention to apply for the appointment of a joint liquidator via the KSFIOM website. Clearly this has not happened.

A further request made to the court by Mike Simpson was for ‘direction’ that ‘he need not answer each and every individual’s enquiries sent by and on behalf of depositors’ providing he reports every 7 days. Based on the lack of information in his ‘reports’ to date this is laughable.

From my own personal point of view the two points above are nothing short of a disgrace and only highlight the contempt in which Simpson has held depositors to date. Simpson has not responded to any of the requests by the solicitor on the IoM and is now obviously looking for ‘authority’ to continue ignoring his duties to us.

Let us not forget where PWC’s funding is coming from. They will be paid in preference to any of us out of whatever assets the bank has….assets that are rightfully ours. We are paying Simpson’s fees and as such he should be forced to report to those that pay him.

The Isle of Man authorities have informed us, as a party being represented in the upcoming hearing, that they will be petitioning for yet another postponement of liquidation at the hearing on Thursday, this time for 60 days. The IoM authorities have also confirmed they have appointed a restructuring expert to try to sell the bank or run it down as previously mentioned.

I have requested that the solicitor in the IoM informs the court that he will not oppose the petition to postpone providing these conditions are agreed to:

The court agrees to the formation of a provisional creditors’ committee to whom the joint liquidators are accountable.
The joint liquidators will agree to answer any and all correspondence from solicitors representing depositors in a full and timely manner
The balance sheet of KSFIOM as at 7 October 2008 is made public just like EY did for KSFUK
The parental guarantee, that no one seems to want to disclose, is provided for all to see.
These requests have also already been forwarded to solicitors acting for the IoM authorities.

I have no idea how successful the request to the court will be, but PWC need to be held accountable for their actions and nothing they have done to date gives me any confidence in what has been done so far. I would go as far as saying that I believe Mike Simpson is out of his depth here so its good news that a senior restructuring partner has been brought in to help out.

All official court documents that we have gathered surrounding this will be published on the official KSFIOM DAG website.

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