Depositors with the collapsed bank Kaupthing Singer and Friedlander are to decide its future next month.

That’s after the High Court in Douglas ruled the Manx Treasury's Scheme of Arrangement would be put to a vote.

The government estimates its scheme would fully refund more than 70% of depositors within two years, but some of them want the bank to go into immediate liquidation.

The court heard what was described as a 'sustained and eloquent attack' on the perceived benefits of the Scheme of Arrangement.

The Depositors' Action Group said it would bring no tangible benefits and called for liquidation.

That would trigger payouts from the Depositors' Compensation Scheme, with savers eligible to receive up to ?50,000 as well as any other money the liquidator could recover.

However, the Treasury argued its scheme would give guaranteed, scheduled payments and offer a better outcome for the 10,000 depositors.

The government scheme will now be put to the vote on May 19 and the petition to wind up the bank has been adjourned until May 27.