The 17-per-cent interim payout to Dyoll Insurance Company Ltd. creditors scheduled to be made 31 October has been delayed, Ken Krys, one of Dyoll’s Joint Liquidators has announced.
The reason for the delay has to do with an amount of money held as a statutory deposit by the Jamaican Financial Services Commission.
The Joint Liquidators had applied in the Supreme Court of Judicature of Jamaica for direction as to whether the deposit, under Jamaican law, was held for the benefit of all Dyoll creditors or just those in Jamaica.
‘The amount that (we) believed was subject of the application was J$45,300,000, approximately US$740,000,’ stated a press release issued by the JL’s, Mr. Krys and John Lee of Jamaica,
However the JFSC filed an affidavit on 31 October indicating that the deposit was actually J$635,000,000, or approximately $10,400,000.
That amount represents the majority of Dyoll’s current assets.
‘Therefore until the (Jamaican) Court determines the extent of the deposit and for whom it is held in benefit, the JL’s are unable to make an interim dividend distribution,’ the press release stated.
At issue is whether the additional funds representing the difference between the US$740,000 and the $10,400,000 can be classified as a statutory deposit subject to Jamaican law, and whether it is as a result only payable to Jamaican creditors.
Mr. Krys, speaking with the Caymanian Compass, said that if the JFSC were successful in its argument, there would be no dividend in the near future to Cayman’s Dyoll creditors.
‘There’s very little money otherwise,’ Mr. Krys said.
Attorney Stuart Diamond, who represents many of Cayman’s Dyoll creditors was not happy with the recent development.
‘This is worse than disturbing,’ he said. ‘Especially since the judge himself had pointed out that the JFSC had indicated previously that the amount it had in deposit was the $740,000.
Mr. Diamond, however, said the JFSC will have a difficult time proving the case because its own attorney in the Dyoll matter here, QC Emil George, has stated before the Cayman court that it did not really matter how the Jamaican court ruled about the statutory deposit because it was only $740,000.
‘He’s on record here as saying that,’ he said.
Mr. Diamond was frustrated by the last minute tactic by the JFSC.
‘It’s a hiccup, and it’s unfortunate, especially with the FSC doing this at the eleventh hour, as is their fashion.’
The matter is scheduled to be heard again in the Jamaican Supreme Court on 14 November.
‘I’ll probably go over (to Jamaica) on the 11th and start working on our argument with the consul over there,’ Mr. Diamond said.