Moves to put the collapsed bank Kaupthing Singer and Friedlander into liquidation will begin next week.

Attempts by the Manx Treasury to avoid that happening ended in defeat yesterday, with the news depositors had rejected the government's preferred route to repay them through a Scheme of Arrangement.

With that option now closed, a liquidation will be declared at a court hearing next Wednesday, which in turn will trigger the Depositors' Compensation Scheme.

That will be jointly funded by the Manx government, the banks and any assets recovered by the liquidator.

The vote brings to an end six months of work by Treasury to save the bank.

Chief Minister Tony Brown says although he's disappointed, there are no regrets.

He says the government had a duty to do what it believed would be best for the most depositors: