Creditors of the failed Dyoll Insurance Company can expect a payment fairly quickly, said attorney Stuart Diamond after creditors voted to appoint joint liquidators last Thursday.
‘I think the creditors will get an interim payment of 10 to 15 cents on the dollar within six weeks,’ said Mr. Diamond, who held the proxies of 112 creditors representing US$16.7 million in value for the voting.
The meeting of the creditors of the Jamaica-based Dyoll was held in Kingston last Thursday, which Mr. Diamond attended.
The creditors, many voting through proxies, appointed John Lee of PriceWaterhouseCoopers in Jamaica and Ken Krys of RSM Cayman as the joint liquidators.
The pair beat out three other liquidator proposals, including one by Deloitte.
The latter seemed to be the liquidator of choice of the Jamaica Financial Services Commission, Mr. Diamond said.
‘It was really a two-horse race,’ said Mr. Diamond, noting that in the end, the Lee/Krys appointment won by a comfortable margin.
‘It was the best combination for all the creditors, really,’ he said.
The results of the voting are still unofficial, and the final tally will not be known until tomorrow.
Mr. Diamond said the JFSC might contest the election results.
The JFSC has steadfastly opposed any role of a Cayman entity in the liquidation of Dyoll, Mr. Diamond noted.
Dyoll was put in provisional liquidation by an order of Cayman’s Grand Court on 11 April. The JFSC brought an action to revoke the provisional liquidation order by saying the Cayman’s Grand Court did not have jurisdiction in the matter, but Justice Priya Levers dismissed the application.
Dyoll collapsed primarily because it did not have adequate reinsurance to cover the extent of damage caused by Hurricane Ivan to properties it insured in the Cayman Islands through its broker, Cayman Insurance Centre.
Dyoll’s collapse led to a criminal investigation. Last month, the company’s former Chief Operating Officer, Mark Thwaites, was arrested and charged with four counts of breaching Jamaica’s Insurance Act.
Mr. Diamond said he was ‘guardedly happy at the moment’ with the way events unfolded at the creditors’ meeting.
Although one of PriceWaterhouseCoopers’ directors said Dyoll creditors could expect no more than 35 cents on the dollar of their claims, Mr. Diamond was still hopeful it would be more.
‘Twenty-five to 35 cents on the dollar is the likely range of what is left in the company right now, but this isn’t over by a long shot,’ he said.
Mr. Diamond said there were still some other avenues to pursue for the recovery of more Dyoll assets, such as the proceeds of director’s insurance and any liability insurance the auditors of the company might have had.
Although he is confident the Dyoll creditors will see a first payment soon, Mr. Diamond did not know when they would see others.
‘I’m sure there will be other payments, but I can’t hazard a guess as to when they would be, or how much.’