NI Presbyterian mutual society, Short of funds for withdrawal?

ballyblack

IRISH TIMES

Today 8th July 2009

Administrator of collapsed Presbyterian Mutual Society to sue defaulters

LEGAL ACTION is to be taken against a number of members of the collapsed Presbyterian Mutual Society who have defaulted on loans, its administrator has revealed.

Arthur Boyd said an increasing number of borrowers are having difficulty in “meeting their obligations” to the society, which was exclusive to members of the Presbyterian Church.

It has also emerged that there could be a £72 million shortfall in the loan book as a result of the crash in property values. According to recent valuations and current balances on advances made by the Belfast society, the loan book currently stands at £179 million. This includes advances totalling £85 million secured on building sites and development land.

Mr Boyd said property advisers have informed him that millions of pounds have since been wiped off the value of these advances.

He believes the collapsed society will be unable to recover the full value of its advances and the total “estimated recovery” could be in the region of £107 million.

The significant drop in property values is yet another setback for the mutual society’s 9,500 members. The society, which was started in 1982, went into administration last November with millions of pounds of its members’ money in the balance.

Its members have been unable to access their assets since its collapse.

Earlier this year the Belfast society’s members agreed to “an orderly run-down” of the business on the understanding that they may not get a full return on all of their investments. But the latest progress report from the administrator suggests that the circumstances the members now find themselves in may be worse than originally anticipated.

Mr Boyd said that, due to the “significant drop in property values”, he has been advised to make a provision of at least 40 per cent on the value of property provided as security to the Presbyterian Mutual Society during 2005 to 2007.

“The estimated recovery figures suggest that the directors’ initial assessment in their statement of affairs of realisable value of the society’s secured loans may have been too cautious,” the administrator has warned.

Mr Boyd said the collapsed society has also suffered a 32 per cent drop in the value of its investment portfolio. The portfolio, which includes 13 properties, has seen its value fall from £93 million in December 2008 to an estimated £89 million.

In the period since the mutual society went into administration, three tenants of these properties – Woolworths, Principles and Rosberys – have also gone into administration, which has led to a considerable dent in the society’s overall rental income.

However Mr Boyd has disclosed that there may be some glimmer of hope for the collapsed society’s members.

He said he was in contact with two parties that have expressed an ongoing interest in the assets of the society, which could potentially deliver a return for its members.

Peter Robinson, the First Minister, was yesterday expected to raise the plight of members of the collapsed society with British prime minister Gordon Brown during a meeting in London.

HOPE

There is also mention of the PMS in today's Irish Times under "Robinson Outlines Plan For Policing" - Following his meeting yesterday with the PM, Peter Robinson has reported significant progress on the problem of the PMS. It goes on to say that officials are working on proposals and reporting back to a group of Ministers including Mr Robinson, DFM Martin McGuinness as well as the chief secretary to the treasury and NI Secretary of State Shaun Woodward.

This is in contrast with recent reports in the Newsletter.

Who do we believe?

freddiemae

Newsletter today
http://www.newsletter.co.uk/news/First-Minister-presses-Brown-again.5438247.jp

totallyletdown

BETRAYED wrote: »

Reports in yesterday's Newsletter 6 July and today's Belfast Telegraph AM do give some cause for concern to PMS members.
A meeting of representatives of different lobbying and action groups is meeting this afternoon in Templepatrick.
Amongst other matters these press reports will be considered.
Also the matter of the administrator withholding ,what he claims is commercially sensititve information (some of which is already in the public domain), is also being discussed as is his failure to reply to certain correspondence and requests for meetings with him from people who have information that could benefit him, PMS creditors and members.

Do you have to be special to be invited to any of these meetings.
I am as anxious as anyone and would like to attend , if only for my own peace of mind that some things are being done.

BETRAYED

totallyletdown wrote: »

Do you have to be special to be invited to any of these meetings.
I am as anxious as anyone and would like to attend , if only for my own peace of mind that some things are being done.

This group meets informally and shares information which those attending have. Though this last meeting was held in Templepatrick previous meetings were in Shore Street Presbyterian Church premises in Donaghadee. The next meeting is to be held there on the first Tuesday in August at 8.00PM.
Though I am from Co. Antrim I have always been made very welcome.

Lester_F

Please tell us more.

Is proof required that from those who attend that they are a shareholder?

Would the floor be open for anyone to speak?

Are minutes taken?

Have any of the Directors been invited ot attended?

BETRAYED

Lester_F wrote: »

Please tell us more.

Is proof required that from those who attend that they are a shareholder?

Would the floor be open for anyone to speak?

Are minutes taken?

Have any of the Directors been invited ot attended?[/QUOTE]

Those attending are either PMS shareholders or are representing a partner or elderly relative who is a member.
A chairperson is appointed for the meeting.
Anyone attending can speak.
Regarding a director being invited- all the directors whom I have tried to speak to have declined to take my phone call and several have conveyed to me that they are not speaking to anyone because of legal advice they have been given.
Incompetent as it looks they may have been in their role as directors I think it disgraceful that they are not prepared to discuss with us any proposals that we may have to help those who are trying to put forward possible proposals to government, the administrator and others for the future of PMS.

HOPE

BETRAYED wrote: »

Lester_F wrote: »

Please tell us more.

Is proof required that from those who attend that they are a shareholder?

Would the floor be open for anyone to speak?

Are minutes taken?

Have any of the Directors been invited ot attended?[/QUOTE]

Those attending are either PMS shareholders or are representing a partner or elderly relative who is a member.
A chairperson is appointed for the meeting.
Anyone attending can speak.
Regarding a director being invited- all the directors whom I have tried to speak to have declined to take my phone call and several have conveyed to me that they are not speaking to anyone because of legal advice they have been given.
Incompetent as it looks they may have been in their role as directors I think it disgraceful that they are not prepared to discuss with us any proposals that we may have to help those who are trying to put forward possible proposals to government, the administrator and others for the future of PMS.

In reality as the PMS is in administration and therefore under judicial consideration the Directors are prohibited from public discussion and therefore cannot discuss the issue whether they may want to or not. The same rule applies to the Administrator and my understanding is that it is not within his legal remit to put forward or discuss proposals. This responsibility will lie with the working party who are tasked to find a satisfactory resolution.

freddiemae

http://www.newsletter.co.uk/news/Civil-servants-to-meet-over.5442556.jp

Toastandbutter

is there a definition of PMS "shareholder" anywhere which challenges the Govt view?