Scheme of Arrangement approved

It's decision time for depositors with the collapsed bank Kaupthing Singer and Friedlander.

The Island's High Court today supported the Manx government’s proposed Scheme of Arrangement, and depositors will now either back it themselves next month, or call for the bank to go into liquidation.

It follows a day of submissions in which arguments were put forward stressing such a scheme would bring certainty to depositors, who would receive lump payments over a set period.

However, a number argued otherwise, saying there would be be no tangible benefits and calling for immediate liquidation of the bank.

Acting Deemster Andrew Corlett said the proposed scheme was not bound to fail, as some suggested, and should be allowed to go before creditors.

That will happen on May 19.