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Boost for KSF depositors

KSF depositors may be in line for quicker and higher recoveries, after administrators confirmed creditors could get back at least half their money from the sister bank in London.

This is more than anticipated by the Isle of Man Government, and moves the estimated minimum recovery rate for the local bank from 65% to about 75%.

The improved prospect of returns from the UK could accelerate repayments under the proposed Scheme of Arrangement for Isle of Man depositors, so individual entitlements of up to £50,000 could be paid in full in 12 months instead of 24 months.

The scheme, which has been amended to reflect this, and other information, is expected to be issued to depositors next week, ahead of their vote on the proposal on May 19.

If they approve the Scheme of Arrangement, the High Court will be asked to sanction it on May 27.

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