Some members of failed Presbyterian mutual get payout

SOME MEMBERS of the failed Presbyterian Mutual Society (PMS) will finally get some of their money out of the defunct society in April following a 16-month wait.

The administrator of the society, Arthur Boyd, has confirmed he will make an interim payout to members who have been classified as “creditors” by the High Court in the North. He also intends to set up a creditors’ committee and is actively seeking nominations for it.

Creditors are former members who invested £20,000 or more in the PMS and who are technically loan capital holders with the defunct society. They will receive a proposed payment of 12 pence for each pound they invested with the society.

But investors, mainly small savers, who entrusted the society with less than £20,000 and who are technically shareholders, will not receive any payment from the administrator next month under terms set out by the High Court.

The court ruled that shareholders in the society – Presbyterians who held withdrawable share capital – were not creditors in the administration. This means small shareholders will not receive any money from the administrator of the society until “creditors” have been paid in full.

Figures provided by the Northern Ireland Executive suggest that roughly £100 million is held in withdrawable shares, whereas £204 million is in loans.

Many former PMS investors also hold both share and loan capital. Under the current arrangement they will get a payout on the loan capital they hold but not on the share capital sum.

The administrator has informed shareholders there is a possibility they could be treated as creditors if they can prove they had requested payment of their share capital prior to October 25th, 2008 – the date the PMS imposed a 21-day notice period on applications to withdraw shareholdings.