Dyoll liquidators to appeal payout

[Dr.Dudd]

Dyoll liquidators to appeal payout
published: Wednesday | August 2, 2006


Left: Coffee farmer Eric Anderson points at what was once his farm that went downhill after a landslide in Cascade in the Blue Moutains in Portland last year. Right: Dyoll Building in New Kingston - Ricardo Makyn/Staff Photographer

The liquidators of Dyoll Insurance have announced that they will formally appeal the decision by a Jamaican judge that US$8 million (J$520 million) of reinsurance money on two large policies- including one covering hundreds of Jamaican coffee farmers - should go directly to those claimants rather than in a pool for the benefit of all creditors affected by the company's liquidation.

At issue is the ultimate fate of US$3 million (J$195 million) that reinsurers had paid to settle claims by up to 800 coffee farmers for damage to their crops suffered from Hurricane Ivan in 2004 as well as another US$5 million (J$325 million) for the 18-hole Safehaven golf course and club in Grand Cayman.

File appeals

In June, Justice Bryan Sykes, agreeing with the claimants, ruled that Dyoll had operated merely as an agent or front for the policyholders in placing the policies and that the payouts should go directly to them.

The liquidators argued that the proceeds were assets of Dyoll and should be distributed on the same basis among all unsecured creditors.

"Based on the advice received and taking into consideration the cost of appeal against the benefit to creditors, the JLs (joint liquidators) and the committee of inspections (the elected representatives of creditors) agreed to file appeals," the liquidators, Kenneth M. Krys and J. W. Lee said in a statement.

Dyoll was put under management, and subsequently placed into liquidation, by Jamaica's Financial Services Commission (FSC) early in 2005 when regulators found that the company's finances were impaired.

The FSC also claimed that some senior managers had attempted to hide the state of the finances in the months after 'Ivan' slammed in Jamaica and The Cayman Islands, causing hundreds of millions of dollars in claims, mainly in the latter British colony.

Not convertible

At a creditors meeting last year, it was disclosed that Dyoll had liabilities of approximately J$2.5 billion against assets of $1.6 billion, but liquidators indicated that not all the assets might be convertible.

The assets, for instance, included J$403.5 million in receivables, some of which would probably be difficult to collect.

There is also a dispute over how much money the FSC held for Dyoll in a so-called prescribed account, which regulators demand insurance companies pay over to cushion potential shortfalls in claims settlements. This fund is to cover only policies concluded in Jamaica.

The FSC says that the fund contains about $375 million, which means that more of the assets would be available to Jamaican creditors, against $45 million claimed by the liquidators. This issue is to go to an arbitrator.

If the fund is at the lower end of the scale, as claimed by the liquidators, it means that there will be more cash in the general pool from which creditors, other than Jamaicans, can share.

Dividend payout

It is apparently a similar concern that is causing the liquidators to appeal Justice Sykes' ruling, which, they said, had "negative financial implications for the future dividend payments to the wider body of creditors of Dyoll".

Last October, the liquidators had promised an initial payout of 17 per cent to creditors and had suggested that those who were owed could eventually collect up to 30 cents on the dollar. However, in April, the liquidators began to make a payment of 12 per cent, partly because of the uncertainty over the prescribed fund.

Advance payments

In the case of the Jamaican coffee farmers, who were insured via the Coffee Industry Board, the Government recently announced that it would advance them approximately $100 million, against the US$3 million that remains in dispute. It was, however, not immediately clear what would happen with regard to the rest of the money should the Dyoll liquidators win their case at appeal and how the government might recoup its money.

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[Dr.Dudd]

Re: Dyoll liquidators to appeal payout

These liquidators are justacting in favor of the Caymanians. It is a pity they don't have nothing to loose,because they don't own the company.
They are nothing short of dishonest. they are clearly ony an agent to policies bought from foreign companies by these farmers. these companies paid as agreed to the farmers,and they want to share the farmers funds wuth the other accounts that did not contribute to the premiums or was a part of the policy.
If the Insurers did not pay those farmers,would they have used the funds paid by the other policy holders to pay the farmers,who were not covered by their policy?
they are a group of near criminals. It is people like these why there is so much crimes in the country. they are the lead.
Ken Krys is a Caymanian appointed by that countr'ys government.
They have been balling about the 3 million dollars ever since they were bashed by ivan.
Caymanian laws did not adequately protect their policy holders,that they are trying to do too late. In the mean time they want to rob Jamaican farmers.
Hey we don't envy hwat they have,why are they trying to take what is truly the local farmer's?
first they were trying to get the farmers to accept the loss,claiming that it would be too expensive to go to court.
Now I suppose they believe that if it goes to the UK privy council,they will act in their favour,because they are colonies. well if the privi council does that. It will be a good excuse for the local politions to cut all ties with them.

[Dr.Dudd]

Re: Dyoll liquidators to appeal payout

New setback to Dyoll creditors
By Dominic Tonner
Cayman Observer.
A court ruling in Jamaica granting reinsurance proceeds of failed insurer Dyoll to only two companies represents a setback to ordinary policyholders, say the joint liquidators.



Jamaica-based Dyoll collapsed last year under the weight of Hurricane Ivan-related claims. Since then, joint liquidators Kenneth Krys in Cayman and John Lee in Jamaica have been attempting to secure the estimated US$40 million in assets that the insurer appeared to own when it went bust.



Of those total assets, around US$6 million came from policies that Dyoll had taken out with its reinsurers. Now, two businesses - one in the Cayman Islands, the other in Jamaica - have successfully persuaded the Supreme Court of Judicature in Jamaica that the proceeds from two large reinsurance policies were connected to them.



The companies, who are not being named, had asserted that Dyoll effectively acted as a 'front' and that the reinsurance proceeds should go directly to them.



The joint liquidators, on the other hand, argued that the reinsurance proceeds should be added to the common pool of funds and paid out to all of Dyoll's creditors, including hundreds of policyholders in the Cayman Islands.



Krys said this week that he and Lee had sought legal advice and were planning an appeal.



The appeal will be heard in Jamaica. The joint liquidators have the right to take the case to the Privy Council if necessary.



Until now, it has been estimated that Dyoll creditors may eventually be entitled to 35-40 cents on the US dollar, but Krys said the loss of the reinsurance proceeds would reduce this amount by about 15%.



Dyoll creditors received their first dividend, worth 12 cents on the US dollar, in May.



Amid uncertainty over the future of the reinsurance proceeds, as well as the availability of a prescribed deposit currently held by the Jamaican Financial Services Commission, Krys admitted the next dividends for Cayman policyholders may not now be ready for distribution this year.

[Dr.Dudd]

Re: Dyoll liquidators to appeal payout

Coffee farmers get $100m interim payment

PATRICK FOSTER, Observer writer
Saturday, August 12, 2006



CLARKE. this interim payment will go a far way in assisting coffee farmers
MINISTER of Agriculture Roger Clarke yesterday handed over cheques totalling J$100 million as interim payment to coffee farmers whose crops were affected during the onslaught of Hurricane Ivan in September 2004.

The farmers were awarded a total US$3.1 million (approx J$204 million) by the Supreme Court after the collapse of their insurers - Dyoll Insurance Company - but faced a delay in payments after the liquidator John Lee of PriceWaterhouseCoopers was granted leave for appeal.

"This interim payment will go a far way in assisting coffee farmers," Clarke said at the handing-over ceremony at the Ministry of Agriculture in Kingston. He added that government was doing its best to help the farmers as there was now a "paucity of resources".

One cheque for $15 million was handed over to the Coffee Industry Board (CIB), and two others totalling $85 million, to the trustees of the Coffee Industry Insurance Fund.

The individual claims are now being reconciled and the funds will be disbursed within three weeks, the agriculture minister said.

Approximately 6,000 coffee farmers islandwide, after a wait of almost 24 months, will benefit from the funds which will be administered by the CIB.

Graham Dunkley, director-general of the CIB, said that his organisation was working with stakeholders in the industry to determine the benefits to the individual farmers.

Clarke said, however, that full payments would now have to await court proceedings.

In June, the Supreme Court ruled that coffee farmers should receive US$3.1 million in compensation held in escrow by German reinsurers Munich Re, after their insurers Dyoll Insurance Company filed for bankruptcy earlier in the year.

But that payment faced delays after liquidators PriceWaterhouseCoopers were given leave to appeal.
Last month, president of the Jamaica Agriculture Society Norman Grant called on government to advance payments to the coffee farmers by August 30 as the funds had already been set aside and they had "suffered long enough".

In April, more than 100 coffee growers protested outside government offices to demand payment of the insurance funds.

The farmers, who sell their beans to the CIB, asked the government to expedite payment of insurance money owed to them or hand over half of that amount until the legal dispute was settled.

"Since Hurricane Ivan I have not reaped a box of coffee. I just did some cash crops," said Carlyle Francis, a small coffee farmer in the St Catherine hills.

"I think this will be of great help. It is a good move until the appeal comes through," Francis told the Observer yesterday.

[Dr.Dudd]

Re: Dyoll liquidators to appeal payout

'Ivan' relief ready for coffee farmers
published: Saturday | August 12, 2006

John Myers Jr., Agriculture Coordinator


Roger Clarke (left), Minister of Agriculture and Land, hands over portions of the $100 million earmarked for distribution to coffee farmers to Graham Dunkley (centre), director general of the Coffee Industry Board, and St. Clair Shirley, one of the trustees of the Coffee Farmers Insurance Fund, yesterday. - Rudolph Brown/Chief Photographer


The Government has released the $100 million promised as interim payment to lowland and Blue Mountain coffee farmers whose properties were destroyed by Hurricane Ivan in 2004.

Agriculture and Lands Minister, Roger Clarke yesterday handed over the cheques, which included $60 million as advance payment, pending the outcome of the court case, and $40 million as a grant, at the Agriculture Ministry's Hope Gardens, St. Andrew, offices.

The trustees of the coffee farmers insurance fund are to administer the $60 million, as well as $25 million of the grant portion. The Coffee Industry Board is to administer the other $15 million.

SOME LEVEL OF RELIEF

"What the Government has decided to do is to bring some level of relief to those farmers," Mr. Clarke said. The minister assured that the Government would recover the advanced portion of the money as the farmers would still receive about 12 cents for every dollar in the event that they lose the appeal. The coffee farmers have submitted a claim for US$3 million.

He noted that the ministry had intended to pay over the money on July 28, but certain legal issues, as well as, the trustees not having a taxpayer registration number (TRN) resulted in the delay.

The Agriculture and Lands Minister pointed out that a special award has also been made for lowland coffee farmers who were not entitled to any of the insurance proceeds. "We thought it fit that if we're dealing with farmers we would give them a level of compensation, so $15 million has been allocated to the lowland (coffee) farmers," Mr. Clarke said.

St. Clair Shirley, who accepted the money on behalf of the trustees, expressed his appreciation for the interim payment. At the same time, he expressed disappointment with the decision of the liquidator of the collapsed Dyoll Insurance Company to appeal the Supreme Court's directive to pay over the farmers' claims. "I personally was a little disappointed with the liquidator because in our interim meetings, he made it abundantly clear to us that he would abide by the decision of the court," he said.

Senator Norman Grant, president of the Jamaica Agricultural Society, welcomed the intervention, but is insisting that farmers receive the funds before the end of August. Distribution of cheques to farmers is expected to begin in the next three weeks.

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