Presbyterian Mutual Society

Welcome to the Presbyterian Mutual Society Ltd (In Administration)

This website has been established and will be maintained by the Administrator to deal specifically with the affairs of the Presbyterian Mutual Society Limited (In Administration). On this page the Administrator will provide updates as and when necessary. Documents issued by the Administrator are available on the documents page

Current Information

Update from the Administrator 22 July 2010

Nominations to Creditors’ Committee – Further Guidance

The Administrator has issued further guidance on the process for nominations to the proposed Creditors’ Committee following feedback from some members/creditors. These notes should be read in conjunction with the information already provided on this subject in Section 9 of the Administrator’s Progress Report dated 15 June 2010 which is available on this website. Information on the role of the Creditors’ Committee is also contained in the ‘Questions to the Administrator’ section of the site.

Some members/creditors, for reasons of privacy, are reluctant to state the amount of their claim on the nomination form. The Administrator has decided that in those circumstances it is sufficient for the person nominating someone for election to the committee - instead of inserting the amount of claim - to insert their certificate number/s which the Administrator can then verify against records to confirm the claim falls within the class of creditors, or the withdrawable shareholder group, for which the nomination is being made. The onus is on the nominees submitting a nomination to ensure that their nomination form is correctly completed, in particular that those persons supporting a particular nomination are within the correct class for voting.
If the creditor/shareholder signing the nomination form holds a joint account with someone else, then both signatories to that joint account must sign the nomination form, and these signatures will be regarded as a single nomination.
As regards the requirement to have ten other creditors nominate a candidate for election to the committee in each of the classes of creditor, this is a requirement of the directions from the High Court and the Administrator cannot vary that requirement.
In January 2009 the Administrator obtained a court order to the effect that the details of monies paid into the Society and borrowings from the Society should not be disclosed by him. This was because of the desire for privacy expressed by members/creditors in respect of their holdings in the Society, a desire which has been reinforced by the feedback to this nomination process.

The Administrator recognises that this non-disclosure might cause some practical difficulties in seeking nominations to the creditors’ committee, which is one of the reasons why he has allowed an extended period of time for nominations to be put forward. In addition, a number of interest groups have come together to represent creditors and holders of withdrawable share capital and there are also informal networks between members through congregations, all of which he believes will enable those seeking nomination to gather the signatures required.

Update from the Administrator 18 June 2010

The Administrator has this week posted to members/creditors his six monthly progress report for the period 17 November 2009 to 16 May 2010. In the report he refers to the procedure for securing nominations to a creditors’ committee and he encloses with the report a nomination form. Anyone seeking nomination to the committee is advised to read the relevant section of the report carefully and to complete the nomination form as described. The report is available to download here.

Update from the Administrator 5 May 2010

The Administrator has today written to creditors of the Society declaring a first interim distribution of 12p in the £ and enclosing cheques. He is required to give creditors an indication of when a further dividend is expected to be paid. In the letter, the Administrator says he anticipates making a distribution at least annually to creditors and more frequently if he has sufficient monies available to do so. The Administrator points out that he is required to base this time-frame on the current position, even though the Northern Ireland Executive has outlined a package of financial assistance. At the time of writing, the Administrator expects it may be some time before the Northern Ireland Executive can obtain the necessary approvals it requires for its proposal to be put into effect. He cannot formally assess the implications for members/creditors until the details of an approved plan are presented to him.

In his letter to creditors, the Administrator says he will be writing separately to them regarding the procedure for establishing a creditors’ committee.

The Administrator’s six-monthly progress report for the period to 16 May 2010 will be sent to members/creditors in mid June.

Update from the Administrator 30 April 2010

The Administrator is pleased that he is now in a position to process and post cheques to creditors in respect of the first interim distribution of 12p in the £. Because of the Bank Holiday on Monday and a complex procedure for checking payments, posting will take place next Wednesday, slightly later than originally anticipated. Creditors should receive their cheques and an accompanying letter by the end of next week.

Update from the Administrator 14 April 2010

The Administrator is aware that members/creditors have questions about the impact of the proposed plan to assist creditors and to provide practical help to deal with the hardship experienced by small savers. While he very much welcomes any steps to ease the plight of savers, the current position is that there is, as yet, no agreed plan. The Administrator is not in a position to comment on speculation about a proposed plan. Only when a package of assistance is formally offered will the Administrator be able to assess the implications for members/creditors.

Update from the Administrator 30 March 2010

The First and Deputy First Minister have made a proposal to the Treasury to help savers in the PMS.
This will require approval from the Treasury and the Ministers are meeting the Prime Minister this week.
The Administrator has not been informed of the full details of the proposal but the First and Deputy First Minister have said in a statement that their plans will assist creditors and provide practical help to deal with the hardship experienced by small savers.
Any assistance which improves the position of members and creditors would be very welcome.
If the plan is approved, the Administrator will assess its implications and will advise members and creditors of the next steps as soon as possible.

Update from the Administrator 22 March 2010

I have now received the required permission of the Court to pay a first interim distribution to creditors. You will recall that on 12th February the High Court directed that those holding withdrawable share capital in the Society cannot be classified as creditors and, as a result, cannot receive a distribution until such time as creditors have been paid in full.

I have written to creditors giving formal notice of the intended distribution which will be 12p in the £. I aim to be in a position to make the distribution to creditors towards the end of April. I am also required by law to give notice by public advertisement in the newspapers. This notice is downloadable in pdf format here.

I have also written to shareholders regarding the details of the judge’s directions of February 12. I have asked the shareholders whether they had requested payment of their share capital prior to 25 October 2008 (the date on which the Society imposed the 21-day notice period on applications to withdraw shareholdings) and, if so, to provide me with details so I can assess whether or not they can be treated as a creditor.

On 18th March the Court provided directions on other matters as follows:

The period of the administration has been extended until 16th May 2011 and is renewable for twelve monthly periods thereafter, subject to the approval of the Court.
Given the nature of the Society's assets, an extension is necessary to facilitate an orderly wind down of the Society and to maximise the return to those who are owed money.

In relation to the set-off issue, I have been directed as to how this should be applied in the administration.
I will be writing to those creditors and members who also have borrowings with the Society separately in relation to this.

A process for constituting a creditor's committee which the Court was agreeable to has been approved.
I will seek nominations from representatives within certain classes of creditors and arrange for a postal vote so that a committee can be constituted. While shareholders are not strictly entitled to be on the creditor's committee, I will seek nominations from shareholders for one representative who will sit on the committee as an observer.

Subsequent to posting letters, I have been contacted by some members/creditors who were concerned that information they would regard as confidential was visible in the window of the envelope (i.e. the words “To all known …etc”). Having looked into this, I have discovered it occurred during the processing of letters by the mailing house. I will ensure the mistake is not repeated and that confidentiality is fully respected in future mailings.

Update from the Administrator 12 February 2010

The Administrator and his legal advisers are considering the judgement made today and will advise members/creditors of the implications in due course.

Update from the Administrator 28 January 2010

As members/creditors will know from my report to them in December, I have applied to the Court for directions on a number of matters. As I have said, I want as soon as possible to pay a first distribution of capital but I need the Court’s permission to do that. Also, because of the delay in the Government Working Group’s report on any possible alternatives, I have taken the precaution in case of a prolonged insolvency of seeking an extension of the administration for five years.

I have sought direction as to whether I should make a distribution to both share capital holders and loan capital holders and a direction on how set-off should be applied for those with borrowings from the society.

On January 27 and 28 the Court considered arguments on what it regards as the main matter of how holders of share capital should be treated in Administration. The Judge has reserved judgment for a period of two weeks.

When these matters are clarified, I am then obliged to give 28 days notice to those to whom I am directed by the Court to pay a distribution. Therefore the earliest I can envisage making a payment is March.

It has been impracticable for me to write to everyone with this update, which is why I am placing it on this website. I will endeavour to provide regular updates on progress, either through the website or by way of letter.



	Home Documents Questions to the Administrator Contact Us	Welcome to the Presbyterian Mutual Society Ltd (In Administration) This website has been established and will be maintained by the Administrator to deal specifically with the affairs of the Presbyterian Mutual Society Limited (In Administration). On this page the Administrator will provide updates as and when necessary. Documents issued by the Administrator are available on the documents page Current Information Update from the Administrator 22 July 2010 Nominations to Creditors’ Committee – Further Guidance The Administrator has issued further guidance on the process for nominations to the proposed Creditors’ Committee following feedback from some members/creditors. These notes should be read in conjunction with the information already provided on this subject in Section 9 of the Administrator’s Progress Report dated 15 June 2010 which is available on this website. Information on the role of the Creditors’ Committee is also contained in the ‘Questions to the Administrator’ section of the site. Some members/creditors, for reasons of privacy, are reluctant to state the amount of their claim on the nomination form. The Administrator has decided that in those circumstances it is sufficient for the person nominating someone for election to the committee - instead of inserting the amount of claim - to insert their certificate number/s which the Administrator can then verify against records to confirm the claim falls within the class of creditors, or the withdrawable shareholder group, for which the nomination is being made. The onus is on the nominees submitting a nomination to ensure that their nomination form is correctly completed, in particular that those persons supporting a particular nomination are within the correct class for voting. If the creditor/shareholder signing the nomination form holds a joint account with someone else, then both signatories to that joint account must sign the nomination form, and these signatures will be regarded as a single nomination. As regards the requirement to have ten other creditors nominate a candidate for election to the committee in each of the classes of creditor, this is a requirement of the directions from the High Court and the Administrator cannot vary that requirement. In January 2009 the Administrator obtained a court order to the effect that the details of monies paid into the Society and borrowings from the Society should not be disclosed by him. This was because of the desire for privacy expressed by members/creditors in respect of their holdings in the Society, a desire which has been reinforced by the feedback to this nomination process. The Administrator recognises that this non-disclosure might cause some practical difficulties in seeking nominations to the creditors’ committee, which is one of the reasons why he has allowed an extended period of time for nominations to be put forward. In addition, a number of interest groups have come together to represent creditors and holders of withdrawable share capital and there are also informal networks between members through congregations, all of which he believes will enable those seeking nomination to gather the signatures required. Update from the Administrator 18 June 2010 The Administrator has this week posted to members/creditors his six monthly progress report for the period 17 November 2009 to 16 May 2010. In the report he refers to the procedure for securing nominations to a creditors’ committee and he encloses with the report a nomination form. Anyone seeking nomination to the committee is advised to read the relevant section of the report carefully and to complete the nomination form as described. The report is available to download here. Update from the Administrator 5 May 2010 The Administrator has today written to creditors of the Society declaring a first interim distribution of 12p in the £ and enclosing cheques. He is required to give creditors an indication of when a further dividend is expected to be paid. In the letter, the Administrator says he anticipates making a distribution at least annually to creditors and more frequently if he has sufficient monies available to do so. The Administrator points out that he is required to base this time-frame on the current position, even though the Northern Ireland Executive has outlined a package of financial assistance. At the time of writing, the Administrator expects it may be some time before the Northern Ireland Executive can obtain the necessary approvals it requires for its proposal to be put into effect. He cannot formally assess the implications for members/creditors until the details of an approved plan are presented to him. In his letter to creditors, the Administrator says he will be writing separately to them regarding the procedure for establishing a creditors’ committee. The Administrator’s six-monthly progress report for the period to 16 May 2010 will be sent to members/creditors in mid June. Update from the Administrator 30 April 2010 The Administrator is pleased that he is now in a position to process and post cheques to creditors in respect of the first interim distribution of 12p in the £. Because of the Bank Holiday on Monday and a complex procedure for checking payments, posting will take place next Wednesday, slightly later than originally anticipated. Creditors should receive their cheques and an accompanying letter by the end of next week. Update from the Administrator 14 April 2010 The Administrator is aware that members/creditors have questions about the impact of the proposed plan to assist creditors and to provide practical help to deal with the hardship experienced by small savers. While he very much welcomes any steps to ease the plight of savers, the current position is that there is, as yet, no agreed plan. The Administrator is not in a position to comment on speculation about a proposed plan. Only when a package of assistance is formally offered will the Administrator be able to assess the implications for members/creditors. Update from the Administrator 30 March 2010 The First and Deputy First Minister have made a proposal to the Treasury to help savers in the PMS. This will require approval from the Treasury and the Ministers are meeting the Prime Minister this week. The Administrator has not been informed of the full details of the proposal but the First and Deputy First Minister have said in a statement that their plans will assist creditors and provide practical help to deal with the hardship experienced by small savers. Any assistance which improves the position of members and creditors would be very welcome. If the plan is approved, the Administrator will assess its implications and will advise members and creditors of the next steps as soon as possible. Update from the Administrator 22 March 2010 I have now received the required permission of the Court to pay a first interim distribution to creditors. You will recall that on 12th February the High Court directed that those holding withdrawable share capital in the Society cannot be classified as creditors and, as a result, cannot receive a distribution until such time as creditors have been paid in full. I have written to creditors giving formal notice of the intended distribution which will be 12p in the £. I aim to be in a position to make the distribution to creditors towards the end of April. I am also required by law to give notice by public advertisement in the newspapers. This notice is downloadable in pdf format here. I have also written to shareholders regarding the details of the judge’s directions of February 12. I have asked the shareholders whether they had requested payment of their share capital prior to 25 October 2008 (the date on which the Society imposed the 21-day notice period on applications to withdraw shareholdings) and, if so, to provide me with details so I can assess whether or not they can be treated as a creditor. On 18th March the Court provided directions on other matters as follows: The period of the administration has been extended until 16th May 2011 and is renewable for twelve monthly periods thereafter, subject to the approval of the Court. Given the nature of the Society's assets, an extension is necessary to facilitate an orderly wind down of the Society and to maximise the return to those who are owed money. *In relation to the set-off issue, I have been directed as to how this should be applied in the administration.* I will be writing to those creditors and members who also have borrowings with the Society separately in relation to this. A process for constituting a creditor's committee which the Court was agreeable to has been approved. I will seek nominations from representatives within certain classes of creditors and arrange for a postal vote so that a committee can be constituted. While shareholders are not strictly entitled to be on the creditor's committee, I will seek nominations from shareholders for one representative who will sit on the committee as an observer. Subsequent to posting letters, I have been contacted by some members/creditors who were concerned that information they would regard as confidential was visible in the window of the envelope (i.e. the words “To all known …etc”). Having looked into this, I have discovered it occurred during the processing of letters by the mailing house. I will ensure the mistake is not repeated and that confidentiality is fully respected in future mailings. Update from the Administrator 12 February 2010 The Administrator and his legal advisers are considering the judgement made today and will advise members/creditors of the implications in due course. Update from the Administrator 28 January 2010 As members/creditors will know from my report to them in December, I have applied to the Court for directions on a number of matters. As I have said, I want as soon as possible to pay a first distribution of capital but I need the Court’s permission to do that. Also, because of the delay in the Government Working Group’s report on any possible alternatives, I have taken the precaution in case of a prolonged insolvency of seeking an extension of the administration for five years. I have sought direction as to whether I should make a distribution to both share capital holders and loan capital holders and a direction on how set-off should be applied for those with borrowings from the society. On January 27 and 28 the Court considered arguments on what it regards as the main matter of how holders of share capital should be treated in Administration. The Judge has reserved judgment for a period of two weeks. When these matters are clarified, I am then obliged to give 28 days notice to those to whom I am directed by the Court to pay a distribution. Therefore the earliest I can envisage making a payment is March. It has been impracticable for me to write to everyone with this update, which is why I am placing it on this website. I will endeavour to provide regular updates on progress, either through the website or by way of letter.
	© Presbyterian Mutual Society Ltd (In Administration). Information correct at the time of upload