The Cayman Islands Grand Court granted a petition Friday appointing the Joint Official Liquidators of Dyoll Insurance Company Ltd. and agreed to sign an order that clears the way for the first interim payment to creditors later this month.
Ken Krys of RSM Cayman and John Lee of PricewaterhouseCoopers in Jamaica were appointed the Joint Official Liquidators in Cayman. The pair had already been named the joint liquidators in Jamaica on 18 August following a vote by creditors on 28 July.
In a press statement released Friday, Mr. Krys and Mr. Lee said the first interim payment of 17 per cent of agreed claims would be made on 31 October.
‘It is expected that there will be additional interim payments until the process of liquidation is completed,’ the press release stated. ‘This is only the first interim payment.’
Only creditors that have filed Proof of Debt forms with the joint liquidators will receive payments.
‘A Proof of Debt is a declaration by creditors/claimants stating the amount that is owed by the company and the evidence of such,’ stated the joint liquidators. ‘Once these proofs of debt are filed with the company, the company will confirm or reject the debts based on its own records.’
The joint liquidators pointed out that the process of filing Proofs of Debt was still ongoing.
During Friday’s court proceedings Stuart Diamond represented the petitioning creditor while Robert Gardner represented the joint official liquidators. No one appeared to oppose the petition.
Before agreeing to sign the order, Justice Priya Levers asked for some of the language to be reworded to ensure Cayman creditors were on equal footing with Jamaican creditors.
‘I am very protective of our jurisdiction,’ said Mrs. Levers. ‘I need to know Cayman is protected and (Cayman creditors) are going to get these funds. I need to protect our people.’
Mr. Gardner assured Justice Priya Levers that no preference would be given to creditors in Jamaica over creditors in Cayman.
The matters of deposits held on behalf of Dyoll by the Cayman Islands Monetary Authority and the Jamaican Financial Services Commission were also discussed.
CIMA is holding CI$1.55 million and the JFSC is holding J$40 million in deposits.
Mr. Diamond said directions were being sought in the Jamaican court on whether the deposit held there could be legally payable to all Dyoll creditors or just those in Jamaica.
He said CIMA was seeking direction from the court in Cayman on the deposit it held.
Mr. Krys later said the CIMA deposit was a requirement in relation to foreign insurance companies doing business in Cayman and that its purpose was to help cover creditors in the event something went wrong, as it did with Dyoll.
Mr. Diamond said he expected the matter of the CIMA deposit to be resolved within the next three weeks.
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