Kaupthing Singer and Friedlander has been placed into liquidation.

At a court hearing today, Deputy Deemster Corlett considered the company's winding up order, following last week's rejection of the Manx government’s Scheme of Arrangement.

First made in October last year, the order had been placed on hold while creditors and depositors voted on the scheme.

But this morning the winding-up order was granted, on the grounds the company can no longer pay its debts.

Jason Roberts reports (text, below, from attached audio file):

Under company law, a firm which has been placed into liquidation must hold a creditors' meeting within a month to set up a committee of inspection, made up of creditors.

Although Mike Simpson and Peter Spratt have been named as provisional liquidators and receivers, creditors would have the chance to appoint somebody else at that meeting.

But Deputy Deemster Corlett told the court this morning that because those owed money are scattered around the world, that meeting will take place within the next six weeks rather than the usual four.

He granted the winding up petition presented by Kaupthing Singer and Friedlander and the FSC, and adjourned the case until June 23, when the issue of costs will be discussed.