If you are a creditor of Kaupthing Singer and Friedlander, you should have received a pack of documents from the Provisional Liquidator containing the Scheme of Arrangement proposed jointly by the Isle of Man Treasury and himself.

The legal opinion of the Depositors’ Action Group Lawyers is: “ The Scheme, as now amended, is poorly drafted and falls short of what depositors could legitimately expect. The Scheme is a contract and compromise which will bind all creditors if it is voted in. The DAG do not believe it confers material advantage over liquidation. The Scheme allows the Treasury significant control of the asset collection and distribution. It also offers significant immunity from claims by depositors. It promises marginal timing advantages for some creditors, mainly depositors with smaller deposits which come within the limits of the Isle of Man Compensation Scheme, but as the probability of higher returns from liquidation of the bank increase, it is disadvantageous to other depositors. The illustrations given by the document and the way they are portrayed are misleading and do not paint an accurate picture. Even smaller depositors are dependent on the Treasury delivering on its promises and, considering the amount of money they have spent devising and drafting the Scheme, it is worrying that it is not clearer and that it contradicts earlier assurances. DAG is not opposed to a Scheme in principle. It is just that this Scheme is not good enough.”

The date for the vote has now passed (May 19th) and we currently await the outcome.Many depositors did not receive voting papers in time and may or may not have had warning and opportunity to download the forms from the internet so they could vote. If you didn’t get your papers in time please inform us here:KSFIOMNoDocs(?)googlemail [dot] com

During the last seven months the story has been evolving, revelations have been made and facts have come to light about the collapse of the bank. We appeal to anyone who has any information, regardless of how trivial it may seem, to send it to us at KSFIOMStrictlyConfidential(?)gmail [dot] com so we can fit the final pieces of the jigsaw together. We promise to protect your anonymity.

The DAG have also opened telephone help lines for depositors wishing to find out more. A list of the telephone numbers can be found here