Presbyterian Mutual 'Pay Day' Arrives

Savers in the failed Presbyterian Mutual Society (PMS) who lost money when the organisation went into administration are expecting to receive a cheque in the post today.

The long anticipated news comes after a rescue package was agreed by the Northern Ireland Executive in May to see almost 10,000 investors regain access to their savings after the PMS was placed into administration in November 2008.

Those with loan capital in the Society - who are classed as creditors - have received 12% of their money back already, but because of the way insolvency law operates, nothing was payable to shareholders known as members - despite intensive Stormont Executive lobbying to the Exchequer, led by the First Minister Peter Robinson and the Enterprise Minister, Arlene Foster.

Now, the Administrator Arthur Boyd & Co is paying out having developed the scheme in order to distribute the £225m in financial assistance provided by the Government, as well as £1m from by the Presbyterian Church in Ireland.

The scheme was aimed at allowing smaller savers, who invested less than £20,000 with the PMS, to get all of their money back.

The deal will also now see the larger 'investors' receiving 85% now with the remaining 15% dependent on the disposal of PMS properties and other assets.

The NI Enterprise Minister Arlene Foster said the payouts, totally £232m, were a "significant milestone".

"The cheques issued today will ease the hardship caused to members of the society who were denied access to their savings," she added today.

The Alliance MLA Kieran McCarthy has also welcomed news that cheques have been sent to thousands of Presbyterian Mutual Society savers and said it's vital that all savers are fully reimbursed.

"This is a positive development for savers but I hope that all savers including those with larger sums of money get all their money back.

"People have had to wait a long time for this and I am pleased that these cheques have now been sent out.

"The rescue package means that those who had less than £20,000 invested will receive all their money back but those with more will receive 85% and the other 15% is dependent on the disposal of PMS property and other assets.

"This has been a very difficult time for PMS savers and I believe that every effort must be made to ensure that all savers are fully reimbursed," he said.

The Secretary of State for NI Owen Paterson has also welcomed the news that Presbyterian Mutual Society Members are to receive payments.

Owen Paterson MP, said: "I very much welcome the news that cheques are now being issued to those people affected by the collapse in 2008.

"This has been a very stressful and worrying time for a great many people, particularly the elderly who thought that their savings were gone forever.

"Over the past two and a half years, after Sir Reg Empey [former Ulster Unionist party leader] first involved me in this, I have met a number of savers and heard at first hand many tales of very real hardship.

"I am especially pleased that smaller investors will be able to access 100% of their savings.

"I would like to pay tribute to my colleagues in the Treasury, the Presbyterian Church and Ministers in the Northern Ireland Executive who worked together to find a solution to the PMS crisis.

"In particular, however, I would like to thank the Prime Minister for his personal involvement and support.

"Under the previous administration this issue was frankly going nowhere, this government provided £25m and a loan of £175m.

"David Cameron made a just and fair resolution to the crisis in the PMS a key election manifesto pledge for Northern Ireland and he delivered," he insisted.

Anticipated

Commenting in April, the DUP's Arlene Foster originally welcomed the 'Scheme of Arrangement', noting that she had used insolvency legislation to allow for the society to be placed in to administration rather than forced liquidation.

"This bought us the necessary time to put these arrangements in place.

"It has been a slow and at times difficult path since November 2008, but I am pleased that the administrator has confirmed that the first cheques should begin arriving in July.

"I believe that the small savers will receive all of their money during the initial payments. Had we proceeded to immediate liquidation, the figure would have been zero," she explained, noting that it has taken just over two years to sort this problem.

"I hope we are finally nearing the end of the road of this difficult situation," said Minister Foster.

Welcoming the news of a summer payment - also speaking in April - was Ulster Unionist MLA, Danny Kinahan who said: "What fantastic news to hear that the Presbyterian Mutual Society has had an offer."

See: PMS Savers Get Summer Pay-out Offer

(BMcC/GK)