The joint liquidators of the now defunct Dyoll Insurance Company will on Friday meet with the coffee trustees, the entity charged with the responsibility of securing insurance for thousands of Jamaican coffee farmers, to discuss a possible out-of -court settlement.

John Lee of PriceWaterhouse Coopers, one of the two liquidators, yesterday, expressed concern over whether the meeting will lead to an agreement, or "framework for eventual settlement", as with Safe Haven, but would not elaborate.

Wednesday Business understands, however, that the meeting is to involve the trustees' lawyer only who will represent farmers at the meeting, and not the trustees themselves, who would have to make the decision on whether to settle.

Meantime, Joseph M. Matalon, said Safe Haven, a golf club in Cayman, had reached no final agreement with the Dyoll liquidators, and that the matter was still set to be heard at appeal during the week of February 26.

Matalon, a director of Safe Haven, said there were still concerns about the cost, which totalled near J$200 million, to pay the liquidators, lawyers and rent, among other expenses, compared to the J$129 million paid out to Dyoll creditors in a first interim dividend payment back in May.

"Concerned as we are with the legal costs incurred and to be incurred in this matter, we are even more concerned as to the report of the costs of the liquidation to date in circumstances where we are also unsecured creditors," said Matalon in a statement of clarification.

"(We) would hope that the joint liquidators will take urgent steps to ensure that these are contained and that the winding up can be completed, for the primary benefit of the creditors, in as short a time as possible."

The court eight months ago had ruled on compensation to the Dyoll creditors.

The liquidators, during the court hearing argued that the trustees and Safe Haven both held policies issued by Dyoll and should be paid from the common pool from which all other Dyoll creditors have been compensated so far.

Other insurers

The original ruling, however, determined that Dyoll was not the primary insurer and had only lent its name to legitimise the transactions which the parties had with other insurers; hence money paid by foreign insurers was to go to the trustees.

As at September 30, 2006, just under $1 billion was accounted for on Dyoll Insurance's books and amounts held in trust by regulatory authorities...