This particular society is owed a very large amount of money in repayments on loans it has already made, and was merely short of cash to make new loans or to proceed with loans already agreed.
It is not going to go bust, it MAY end up being taken over by another bank/building society, because it expanded too quickly, and the present management is suspect.
The effect of the people rushing to withdraw their money only makes this inevitable, and if it was in such dire straits, how is it able to issue cheques for the money to these people with the Gadarene tendencies, flocking to withdraw all?
Had I the cash to spare, I would be investing in their shares, as whatever happens by way of takeover or eventual recovery, I would make a profit eventually.
Giok