It’s another crucial day for depositors of the collapsed Kaupthing Singer and Friedlander Isle of Man.

Lawyers will return to court this morning to outline their plans to restructure the bank and avert liquidation.

A winding-up petition was adjourned at the end of November to allow time to look at alternatives, and devise a possible restructuring plan.

With that in mind, it’s believed a request for a further two-month adjournment will be made, as John Moss reports (text, below, from attached audio file):

The adjournment until today was granted, taking into account the wishes of the majority, but not all, creditors. Some left in financial limbo had called for an immediate winding-up.

A fortnight ago, affidavits were lodged with the court explaining the proposal for a 'scheme of arrangement' that will offer better terms of recovery for creditors than would be possible by liquidation and activation of the Depositors' Compensation Scheme.

The plans were drawn up by global business financial consultants Alix Partners, appointed by the Manx government to act on its behalf.

It’s reported that liquidator provisional Mike Simpson has admitted uncertainty over the recovery of assets meant the prospect of selling the bank as a going concern was 'unlikely in the near future'.

Start time for hearing, before Deputy Deemster Andrew Corlett: 10am.