THE LIQUIDATORS of Dyoll Insurance Company are exploring a negotiated resolution of the dispute with the Financial Services Commission (FSC) over a J$45 million deposit.
This is in an effort to reduce the potential costs to the estate and the delays in making a distribution to creditors that arise from a Judicial Review application, the joint liquidators Kenneth M. Krys and John W. Lee said in a statement issued last week.
Insurance companies carrying on business in Jamaica are required to deposit with the FSC. Dyoll made a deposit of J$45 million and on March 4, 2005 the FSC demanded that Dyoll increase its deposit by an additional $1 billion. The management of Dyoll responded by providing a listing of assets to the FSC with a face value of approximately J$500 million.
On March 7, 2005 the FSC assumed temporary management of Dyoll as the company had become insolvent.
The Supreme Court On November 24, 2005 held that the prescribed deposit is to be paid only to those policyholders whose applications were made within the geographical boundaries and limits of Jamaica.
The joint liquidators are appealing that decision on the ground that the prescribed deposit should be paid to all policyholders of Dyoll.
JUDICIAL REVIEW
The court also granted the joint liquidators leave to apply for a judicial review of the decision of the FSC to increase the deposit on March 4, 2005.
"Given the background to this case, the issues are extremely complex and although there is inherent risk in pursing this course, the joint liquidators and the committee of inspection consider the action necessary," the liquidators stated.
"Discussions are ongoing and the parties have agreed to adjourn the judicial review proceedings for a short period of time to fully explore this opportunity. The court has indicated that the next available date for the hearing is in April 2006."
The liquidators said they hope to reach an agreement in the upcoming weeks.
