Depositors with money trapped in Kaupthing Singer & Friedlander Isle of Man (KSFIOM) have a month to wait before finding out how much cash they will get returned after a date was set for a vote on how compensation should be arranged.
Victims are set to meet on 19 May to decide whether they want the Isle of Man-backed Scheme of Arrangement (SOA) proposed for the bank.
If depositors back a SOA, as most are expected to do, the High Court will be asked to sanction the Scheme on 27 May.
Under an SOA, an alternative to a Depositors Compensation Scheme (DCS) and liquidation of KSFIOM, depositors will receive guaranteed scheduled payments.
SOA payments are underpinned by funding from the Treasury, which has £180m in place to support the scheme.
The Treasury believes the SOA has the potential to pay out over half of depositors in full within three months and over 70% of depositors in full within two years.
"We are pleased that the Scheme of Arrangement will now go forward to a vote of depositors so that they can have their say on this proposal," a Government spokesperson says.
"Over the past six months the Government has worked tirelessly to develop the Scheme as a tailored solution designed to provide the best outcome for depositors in the particular circumstances of KSF IOM."
Partner Insight: Cathi Harrison, director of para-sols and Apricity and Clare Farrell managing director at Northfield Wealth met in London recently to discuss how to stay on top of regulatory risk.
CEO labels whistle-blower as 'brave'
Adds up to £130m FUM
Our weekly heads-up for advisers
Think tank report