Hundreds of offshore bondholders are 'disappointed' the Isle of Man's proposed Scheme of Arrangement (SOA) to compensate depositors in collapsed bank, Kaupthing Singer & Friedlander Isle of Man (KSFIOM) has been vetoed.
They believe the depositors' decision will delay their bid for compensation as attention will now switch to the alternative Depositors Compensation Scheme (DCS) option which will take time to implement. It can only be enforced after KSFIOM's liquidation, as the amount returned to depositors will depend on the amount left in the collapsed bank, although a schedule for this process has yet to be decided. Royal Skandia and AXA bondholders were amongst those backing the SOA, which was supported by £180m of funding from the Isle of Man. "The SOA was seen as a good alternative to the Depo...
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