Questions and Answers regarding proposed Scheme of Arrangement

(Responses are given below to a number of questions that have been raised with the Administrator. He will update this page further as and when he believes that a significant point has been raised which requires him to provide clarification.)


Q. Does the 85% return to creditors apply to the amount held when the PMS went into Administration or to the amount held now?

A. Please see point 1 in my letter to creditors and members on page 3 of your documents. The percentages apply to the outstanding debts to creditors – in other words, the amount you are owed as of this date.


Q. I have under £20,000 but some of it is in loan capital and some in shares. How do I calculate the return?

A. I refer to point 2 of my letter on page 4 of your documents. This shows the sliding scale of return to shareholders. You fall into the £0 to £20,000 bracket. You therefore will receive (at least) 97% of your share holding plus 85% of your holding of loan capital. If you add the two sums together, you find the total return you will get.


Q. If someone holds just one pound over £20,000, it would appear they would receive significantly less than someone who holds just under £20,000. Is that correct?

A. As I say in my letter to creditors and members, steps have been taken to ensure funding has been distributed as fairly as possible. In practice, I will apply what is known as “smoothing” around the thresholds of each bracket of total monies to ensure there will be no inequities. Therefore the circumstances you describe would, in practice, not be the case.


Q. Must I attend one of the clarification sessions that have been arranged.

A. No, it is not obligatory to attend, as I point out in my letter. All the information you need to make a decision is in the Scheme document. The clarification sessions were arranged to help in circumstances where a saver has a particular question. Savers can get answers in other ways; for instance you may find that this Q&A page helps you. As the document advises, if you do not understand any terms of the Scheme you should contact your legal or financial adviser and seek advice. Alternatively you can contact the Society. Contact details are in the document.


Q. I have less than £20,000 in the Society but it is all held in loan certificates. What  return do I get?

A. Creditors are defined as those who hold loan certificates regardless of the amount they have. Creditors will receive 100p less the 15p compulsory deferral i.e. 85% of their holding in loan certificates.   Due to the distinction between creditors and shareholders, I have been advised that I cannot legally treat the holders of such loan capital  any differently from each other or in the same way as shareholders.


Q. Can you clarify what the minimum return will be for any saver?

A. I refer to point 4 on page 4 in my letter to members and creditors in the Scheme of Arrangement document and can confirm that the minimum amount that any saver in the PMS will receive under the Scheme is 77% of their total current holding.


Q. Can you summarise the return under the Scheme compared to a liquidation?


A.                                              RETURNS

Scheme of Arrangement


Loanholder only


72% or less

Shareholder only



Shareholder and loan holder

77% to 97%

72% on loan only



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