PAYMENT OF the first interim dividend for Dyoll stakeholders cannot start before a judicial review is held of the latest Supreme Court decision on the issue.
Dyoll was unable to meet its insurance obligations and was taken over by the Financial Services Commission (FSC) in March of this year. Liquidators John Lee and Kenneth Krys got an order in the Supreme Court approving the first payment of a dividend in October, but this was delayed so that the basis for the distribution of a $45 million deposit made by Dyoll with the FSC could be determined.
Under the Insurance Act of Jamaica, insurance companies carrying on business in Jamaica are required to make a 'prescribed deposit' with the FSC.
Regulators may also increase the prescribed deposit, and on March 4, 2005 the FSC requested Dyoll to increase its 'deposits' by an additional J$1 billion and in response to the said request, the acting management of Dyoll provided a listing of assets to FSC with a face value of approximately J$500 million.
On November 24, 2005, the Supreme Court of Jamaica held that local policyholders were to share the prescribed deposits.
FSC CONFIRMATION
The Court found that local policy holders are to be permitted to also participate in the remainder of the liquidation estate, if their claims are not fully satisfied from the prescribed deposit. During the course of that hearing the FSC confirmed that the amount of the prescribed deposit stood at approximately J$375 million (US$6.2 million).
But the amount of the prescribed deposit remains outstanding, the liquidators stated in a release yesterday. The amount is to be determined by the Supreme Court of Jamaica in January 2006, through a Judicial Review.
