STRICKEN SAVERS and investors in the failed Presbyterian Mutual Society could get more than £232 million of their money back by July in a scheme that has been proposed by the administrator.

Smaller savers will receive at least 97 per cent on their shareholding but, according to the administrator Arthur Boyd, “there are insufficient sums” to pay everyone what they are owed by the society.

Since the collapse of the Presbyterian Mutual Society in November 2008, some larger investors who had significant funds in the society have received 12 per cent of their money back. This is because these investors held loan capital in the society and were classed as creditors.

However because of the way UK insolvency law operates, smaller savers who had less than £20,000 invested have not yet received any of their money.

Under the terms of the administrator’s proposed new scheme of arrangement, these small savers would for the first time in nearly three years get access to their cash. The proposed scheme would enable these savers and investors to take advantage of a rescue package put together by the UK treasury and executive, totalling £225 million.

The Presbyterian Church in Ireland also intends to provide financial assistance of £1 million and there is a further £6 million which is also available to the administrator in accrued income from the society’s current investments.

For the scheme to go ahead, it must be approved by a majority of Presbyterian Mutual members and more than 75 per cent in value of both creditors and members.

Mr Boyd warns that if the plan is rejected, the offer of financial support from government sources and the Presbyterian Church will “be withdrawn”. He is advocating that it should be accepted because it “produces a better and quicker return to creditors and members then they could otherwise get”.

Mr Boyd says the only alternative is liquidation of assets.