KSFIOM depositors left with nowhere to turn without help from The Treasury - 2 December 2008

KSFIOM depositors left with nowhere to turn without help from The Treasury - 2 December 2008

KSFIOM depositors left with nowhere to turn without help from The Treasury

Please see attached legislation passed by UK Government on 8th October which seemingly prevents KSFIOM assets from being returned to rightful owner without Treasury approval (relevant extract see bold text below).

Since you produced such an interesting and well-balanced report on the KSFIOM situation at outset, we hope you will be interested in pursuing this avenue particularly in light of the answers to questions at the TSC on 3 November 2008:

Q131 Mr Brady: Chancellor, do you accept the responsibility on the British Government to return that £550 million to the Isle of Man savers?
Mr Darling: It does not belong to the British Government.

No BUT the British Government has given itself authority over the return of assets to KSFIOM (a related party as defined in clause 27).
Yesterday at the KSFUK liquidator hearing in London, KSFIOM was revealed as the second largest creditor with approximately £600m owing - yet failed to get representation on the KSFUK creditor's committee.

Moratorium on payment to related companies
27.

(1) Kaupthing shall not make any payment, dispose of any property or modify or release any right or liability to or for the benefit of a related party without the prior consent of the Treasury, and any such purported payment, disposal, modification or release shall be void.

(2) No related party shall exercise any right of set-off or combination of accounts in respect of any debt owing by Kaupthing without the consent of the Treasury, and any such purported exercise shall be void.

(3) In this article, "related party" means any member of the same group as Kaupthing that is not a subsidiary undertaking of Kaupthing.

(4) In paragraph (1), if Kaupthing is in administration, the reference to Kaupthing is to be treated as a reference to the administrator.

(5) In paragraph (3), "group" has the meaning given by section 421 of the 2000 Act.

Ends

Sent on behalf of the KSFIOM Depositors Action Group -

www.ksfiomdepositors.org

For more information on this story please contact: ksfiompress(?)googlemail [dot] com

Status: 
Released

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