New warning for PMS savers
OLDER people with savings in the Presbyterian Mutual Society might not live to enjoy their investments if it stays in administration for five more years.
A judge was told some of them may die before the PMS's future is resolved if the long-term extension was granted.
It was also claimed that the political will to intervene may not arise while the stricken mutual remains in the limbo of administration.
Nearly 10,000 Presbyterians across Northern Ireland lost access to their savings when it went into administration just over a year ago following a run on its funds.
The High Court has already ruled that shareholders with less than 20,000 in the PMS cannot receive interim payments from a 20 million pot of assets realised.
Mr Justice Deeny's decision last month was taken on the basis that they cannot be classed as creditors.
Following his ruling lawyers for administrator Arthur Boyd returned to court to resolve further issues around its future.
Determinations are being sought on how to set off borrowings against what savers had in the PMS, and on the establishment of a committee to represent the interests of those with savings.
Mr Boyd has also applied for permission to continue running its affairs up to 2015 if no buyer can be found.
But Mark Horner QC, representing a charitable trust of those who had lent money to the society, resisted such a lengthy extension.
He argued that a five-year continuation was inconsistent with the case made out at the beginning.
Mr Horner also stressed the ages of some of those with funds tied up in the society.
"These are elderly people. Some of them may die, some of them may not have the opportunity to enjoy the fruits of their savings," he said.
"Your Lordship would have to be satisfied there is a very good reason to allow an extension of five years and deprive these people of their savings."
Assessing the current economic climate, the barrister contended there was no guarantee that the property market would have picked up by then to allow better returns for investors.
He pointed out that his client, Thomas Howie, ploughs money into building schools and orphanages in Africa.
But due to the situation with funds in the PMS Mr Howie has been denied the chance to use the money to build a new school.
"That's something he feels very strongly about," Mr Horner told the court.
He further claimed that until the period of administration ends it may be that the political will to intervene on behalf of investors may not be there.
Mr Horner, who accepted he was speculating, added: "The termination, the ending of administration may well have the effect of harnessing a political will to do something about their particular plight."
The hearing was adjourned until tomorrow.
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Monday 13 February 2012
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