Page last updated at 09:56 GMT, Saturday, 23 May 2009 10:56 UK

Manx bank to go into liquidation

Isle of Man flag
The Isle of Man bank is a unit of an Icelandic lender

The Manx unit of Icelandic bank Kaupthing Singer & Friedlander (KSFIOM) is to go into liquidation after savers rejected a scheme to compensate them.

The rejected plan estimated 54% of customers would have got all funds within three months, while 76% would be fully refunded within two years.

Instead depositors will now receive funds from the Isle of Man government's bank compensation scheme.

A hearing to place the bank into liquidation will take place on 27 May.

Once KSFIOM goes into liquidation, it will trigger payouts from the government's depositor compensation scheme for savers of up to the first £50,000 lost, plus any other money that is recovered during the liquidation process.

The KSFIOM Depositors' Action Group had argued that the rejected plan gave them little more than they would receive under liquidation and organised an internet campaign urging savers to vote against it.

Provisional liquidators had been appointed on 9 October following the collapse of its parent group.



Print Sponsor


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific