PMS update

The Administrator has given an update on the current state of play with regard to the Presbyterian Mutual Society. This is what he said:

I am pleased to be able to tell members and creditors that the Court has approved the process by which I will put a proposed Scheme of Arrangement to a vote. The proposed scheme is designed to facilitate the pay out of those sums provided by the Government and the Presbyterian Church in Ireland by way of financial assistance. I expect to be able to send the proposed scheme and voting papers to members and creditors next week. They will receive all the information necessary on which to make a decision to accept or reject the proposed scheme. If it is accepted, it will require to be sanctioned by the Court before payments can be made. At this stage it is not possible to be precise about timings, but all being well I hope to be in a position – if the scheme is approved – to process payments in late June/early July.

This should come as good news to all PMS savers. Once the details of the Scheme of Arrangement are unveiled, there will be a number of information and clarification meetings around the country to explain it, so that creditors will have a clear idea of exactly what they are being asked to approve. It may also need to be pointed out to them what the implications will be if they give a thumbs-down to the Scheme. The details, times and venues of those meetings will be sent out out to all savers by the Administrator.

It is my hope that creditors will vote in favour of the Scheme and that those congregations and individuals who are in a position to leave a small percentage of their money in the PMS for a few more years will do so. In that way, smaller savers will stand to get all their money back immediately. Throughout this campaign, that has been our goal, and with good co-operation all round, it can be achieved.

5 Replies to “PMS update”

  1. Dr Carson, I could not agree more. I have a close relative with more than 30 years experience in corporate law in the UK and have been told that the only alternative to the scheme is a ‘fire sale’ of the assets of the PMS with no financial assistance from government whatsoever. This would be disastrous for all savers/investors with the PMS.

  2. however .. where is the principle in mutality in this deal – which is what the Moderator and PCI have called for? the loan holder may not receive all of their money back whereas the saver will?

  3. I’m delighted this is eventually coming to an end. The information evenings will be crucial and savers must think carefully about the road ahead but pressures such as “fire sales” etc while a possibility should not be allowed to cloud or cajoled very serious decisions.

    It is worth remembering that the only monies being actually given to the PMS comes from the Treasury in London £25m and the Church £1m, all other monies such as the support of the NI Executive are loans to be paid back with interest!

  4. The High Court has decided that creditors (loan holders)of the PMS are entitled to receive their savings before shareholders. Even with a fire sale, creditors would receive at least the vast majority of their savings. I expect that Creditors will be asked to delay the return of what they are legally entitled so with the probability they will receive all their savings by the end of the decade. If creditors vote as I expect the Administrator proposes for them to do so, they will ensure that shareholders receive their savings in full by the end of the year.

  5. I’m also glad that this is coming to an end. I was not a PMS ‘investor’, thank goodness. Indeed, in my professional capcity I urged some clients not to put any money into PMS at all. Sadly they did not listen. Hopefully, when people get (most of) their money back, none will not be so foolish at to put all of their eggs in the one proverbial basket in future. I live in hope, if not expectation!

Comments are closed.