Insurance Times learned it could take up to a year to produce a scheme for creditors.
Brokers attending the Insurance Times broker briefing on the Collapse of Independent Insurance learned it could take up to a year to produce a scheme for creditors.
Provisional liquidators for Independent Insurance are this evening sending a letter to all brokers, policyholders and agents of the insurer explaining the company's situation and their plan to set up a scheme of arrangement for the payment of its creditors.
Pricewaterhousecoopers are advising brokers and intermediaries to forward the letter to all their clients who may have claims against Independent.
To be agreed, any scheme of arrangement for Independent will require the endorsement of at least 50% of creditors by number and 75% by value.
Dan Schwarzmann, PWC liquidator for Independent, said: "The scheme for creditors will take time to develop, until then there can be no payment for claims."
Asked how long it would take to produce, Schwarzmann said: "Up to one year. We will work as fast as possible to get one set up."
His colleague Mark Batten said: "In terms of payment, for claims agreed, payment may be on a staged basis. There will be a time frame to make payments up to the total."
The draft letter can also be viewed on Independent Insurance's website at www.independent-insurance.co.uk.
