Confusion reigned yesterday as Kaupthing Singer and Friedlander’s Isle of Man operation collapsed.

Following the revoking of the Icelandic bank’s license earlier in the week, the jurisdiction’s Financial Supervision Commission and Kaupthing released a statement agreeing to present a joint petition to the court regarding potential liquidation.

The subsequent legal petition saw Michael Simpson of Pricewaterhouse Coopers appointed as the provisional liquidator, with liquidation proceedings having been adjourned to 25 October.

The Isle of Man operation said that it had been temporarily suspended for Thursday and Friday when contacted by WealthBriefing, although when told that this position seemed to conflict with a statement on the company’s website the spokesman conceded a lack of facts.  

The island’s regulator confirmed to Wealthbriefing that the first £50,000 of depositors’ cash deposits will be guranteed, although compensation will be paid in instalments over a number of years.

Kaupthing Singer & Friedlander (Isle of Man) is owned directly by its Icelandic parent. It was not officially related to its UK sister which had earlier been taken into administration by Ernst & Young.

Ernst & Young were unaware of the status of the Isle of Man operation when contacted by WealthBriefing. Neither Kaupthing nor its public relations representatives have returned calls. 

The switchboard of the London office of Kaupthing Singer & Friedlander was unmanned yesterday.