Depositors Representation on the Creditors Committee

Depositors Representation on the Creditors Committee

Latest news from the DAG Strategy Team

As you will all be aware DAG and DAG appointed Legal Team, Edwin Coe LLP and Dominic Chambers QC, have been hugely successful in fighting for depositors to date.
The vision and expertise of Edwin Coe to seek a third class for the voting on the Scheme of Arrangement and the masterful performance by Dominic Chambers QC has resulted in a real victory. It is not an easy task for a group of geographically scattered and financially bereft individuals to defeat the proposals of a government with their financial resources and tactics! To date the DAG have scored some other considerable successes we should be very proud of and these have been as a result of the cohesion and solidarity of depositors and the fighting funds donated. For example, in relation to the DCS, DAG has persuaded the FSC to agree to reassignment of rights back to DCS claimants after it has recovered the compensation paid to depositors under the liquidation; agreed that the matter of claims in respect of interest accrued between 9 October 2008 and 27 May 2009 will be put to the court for direction; agreed to extend the interim deadline for claims and that claims which are a little late will not be much delayed in processing; and finally, most important of all, it has agreed that it will try to ensure that DCS claims will be paid in full within 3 months.

So we are now another juncture that requires our unity and efforts once again.

On Tuesday we will battle against not only the costs incurred by our own legal team concerned with the SoA, but also those costs incurred by PWC which run into millions and which IOMT are arguing should be paid out of our bank and therefore our dividends; something our appointed liquidator should be doing for us but has chosen not to! Despite the choice of some parties to support the SoA at previous court hearings (which may be used as evidence against DAG at the costs hearing), the DST have always followed the expert advice of Edwin Coe and will continue to do so under the Creditors Committee. DST are seeking to secure one or more seats on the Creditors Committee as is right for the number and value held by DAG and the success of DST in getting depositors to this point. The continued support of Edwin Coe is imperative for further scrutiny of 3rd party liability where it can lead to boosting returns to depositors by forcing liabilty insurance for an liable parties. Since the defeat of the SoA we have received increased contacts from depositors who are just finding the site which will continue to swell our numbers over the coming weeks as we continue to push at every angle possible.

DAG is recognised now in the eyes of financial institutions, media, political and the public as being representative for the depositors of KSFIOM. One of the primary reasons we have been able to evoke public and political sympathy and get media coverage is because we have worked tirelessly to demonstrate we are neither typically wealthy nor are we tax dodgers. It is essential that perception of depositors is not forsaken at any point as it is still our number one goal that full restoration of funds occurs as a result of a political solution.

Shortly the names of the DAG nominees for the Creditors Committee will be announced. We ask you all to delay sending your proxy or vote out until the our next update on Monday 22nd June when we will launch the new members site, access only for depositors and bondholders, announce the procedure for sending in your proxy forms, and once again open DAG international helplines to help you with completion of the forms.

The DAG nominees for the Creditors Committee will be selected to ensure we have the best representation in terms of commercial and personal experience in addition to the knowledge of our specific situation to date that has come as a result of being at the epicenter of the events as they have unfolded. As members of the DST they will be individuals who understand all the legal moves and issues to date having been in consultation with DAG appointed Legal Team. Despite the confidentiality agreement that has to be signed, DAG representatives on the Creditors Committee will have the benefit of consulting with Edwin Coe throughout so you can be assured your interests are in the best hands. The DST, as always, seeks to represent the best interests of all members, and DST have successfully put pressure on the DCS and we are pleased that the sub 50k depositors will rightfully be repaid it seems in full by September. With regard to the creditors committee we will ensure that representation for Partially Protected/Higher Value depositors is treated as a priority.

As you are aware we are in the process of making KSFIOM DAG a formal, “members only” entity. The membership will automatically include casting of your vote for DAG representation on the Creditors Committee. (More on this to follow)
DST will also seek to establish a Shadow Creditors Committee.

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