Following an application from the Isle of Man treasury, the court granted the adjournment until January 29, saying it was taking into account the wishes of the vast majority of creditors.
The Manx government has appointed global business advisory firm AlixPartners to find an alternative solution to a traditional winding up of the bank.
AlixPartners managing director David C Lovett said he was confident that if an alternative restructuring plan could be put in place, depositors would be “better off” than if the court simply made a traditional winding up order.
He also said there was a real likelihood that depositors would receive an earlier payment than would be the case if the depositors compensation scheme were to be activated.
Possible solutions are understood to include the rescue or sale of the bank and/or a restructuring or recapitalisation plan led by the Isle of Man government, hoped to improve the return for depositors on what they would get back via an uncontrolled liquidation.
A third option would be a rescue plan combining bank recoveries with funding from a third-party.
If a plan under section 152 of the Companies Act 1931 is approved by the court, it would have to be voted on by the creditors before being implemented, thereby giving the creditors a “direct and important voice” in any plan recommended by Treasury, Lovett said.
Treasury minister Allan Bell MHK welcomed the decision: “The government is continuing to do everything it can to reach a solution to this situation that is best for the depositors. While the potential for such a solution exists we have a duty to keep working towards it, and this the court has allowed us to do.’”