Page last updated at 12:16 GMT, Tuesday, 23 March 2010

Some PMS savers to get cash back


Some savers in the failed Presbyterian Mutual Society (PMS) will get some of their money back by the end of April.

People who invested more than £20,000 in the society, known as loan holders, will get a payout of 12p for every pound they invested over that sum.

This will be the first payout since the PMS went into administration in November 2008.

Smaller investors, known as shareholders, are not entitled to a payout following a court ruling.

In February the High Court in Belfast said they could not be considered creditors of the PMS so could not share the £20m of income the society has generated since it went into administration.

The PMS was hit by a "run" in 2008 when many savers began to withdraw money when it became clear the society was not covered by the government's new deposit guarantee scheme.

The PMS administrator, Arthur Boyd, has also said he is seeking nominations for members of a creditors committee.

In a statement he said: "I will seek nominations from representatives within certain classes of creditors and arrange for a postal vote so that a committee can be constituted.

"While shareholders are not strictly entitled to be on the creditor's committee, I will seek nominations from shareholders for one representative who will sit on the committee as an observer."

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