Liquidators of the folded Bermuda branch of the British American Insurance Company (BAICO) have struck a deal to sell the insurer’s Front Street building.The sum raised by the sale, which has been agreed subject to contract, has not been revealed and nor has the identity of the buyer. But if and when the sale is finalised, the money will add to the funds available to disperse among policyholders.The distinctive blue building at 133 Front Street is 40 percent owned by BAICO and 60 percent owned by the BAICO Bermuda pension scheme.Mike Morrison, of liquidator’s agents KPMG Advisory Ltd, who told The Royal Gazette in April that the building had a price tag of $3.6 million, said only: “We were pretty close to our asking price. It’s a tough market, but we did see some competition.”The news comes after policyholders voted overwhelmingly in favour of the scheme of arrangement drawn up by the liquidators that will give them less than 50 cents on the dollar of the value of their policies.There are approximately 3,800 policyholders and 6,000 existing policies. The branch’s assets total almost $11 million and its liabilities around $21 million. BAICO’s Bermuda business, which is a branch of its parent company in the Bahamas, went into receivership in August 2009.Around 250 people turned out for a meeting of creditors at the Ruth Seaton James Centre for the Performing Arts on May 19, and their votes, added to others submitted separately, produced a tally of 1,525 in favour of the scheme and 18 against. The vote cleared the way for the Supreme Court to sanction the scheme of arrangement which it did last Friday allowing the scheme to become effective and the staff of KPMG Advisory Ltd, appointed as agents to the Official Receiver, to start preparing for the payout phase.Mr Morrison said he hoped the sale of the building could be completed quickly to allow liquidated funds to be dispersed among creditors in a single distribution before the end of September this year. A delay in the sale of the building could mean two distributions are necessary.“I’m delighted that we managed to get such an overwhelming level of support for the scheme from the scheme’s creditors,” Mr Morrison said.“People have been patient and quite calm and considerate through this whole process, apart from a little bit of venting, which you would expect in this sort of thing. Some people have been paying in for 40 years, so this has been a very serious issue for them.”Payout calculations are based on valuations of the policies carried out by actuaries over the past year. Creditors who dispute the amounts they are being offered can take their claim to the scheme adjudicator.The deadline for such claims is June 30. If the adjudicator is faced with a large number of disputed claims, payments may be delayed until those issues are resolved.Queries should be addressed to infoba[AT]kpmg.bm or by calling the hotline at 294-2651. Information updates will be posted on the internet at www.kpmg.bm/ba