12 DECEMBER 2008

General Matters

Further to the previous update regarding the creditors meeting convened by the Administrators of Kaupthing Singer & Friedlander Limited ("Kaupthing UK"), I have now received the Administrators' formal report on the outcome of the meeting which can be accessed by clicking here.

A number of depositors have questioned the constitution of the Creditors Committee which was elected at the creditors meeting. The formal report sets out the voting results at Appendix A. I put forward KSFIOM for membership of the Committee however from the split of voting you can see that there were insufficient votes cast in the Banks favour.

The Statement of Affairs of Kaupthing UK

The proposals circulated to creditors did not contain a copy of the Directors' Statement of Affairs. The report on the meeting includes a copy of the Kaupthing UK Statement of Affairs on the back page of the report at Appendix B.

I draw your attention to the notes set out at the foot of the Directors' Statement of Affairs.

I must stress the assets and liabilities shown on the Statement of Affairs reflect the book values only and do not represent the realisable values. I have no information on the realisable values and they may be significantly lower than the book values shown. Until I am able to obtain reliable information on the realisable values and the likely distribution from the Administrators, it will not be possible for me to provide you with a meaningful indication of the ultimate distribution to creditors of KSFIOM.

I confirm that KSFIOM lodged an indicative claim of £600 million against Kaupthing UK solely for the purposes of voting at the creditors meeting. We are continuing to work on reconciling the inter company position so that a formal claim can be lodged in the Administration of Kaupthing UK.

Edge and online Accounts

As stated last week work continues on the restoration of Edge and online accounts in a "READ ONLY" format, for customers to print copies of statements. It has been necessary to engage outside specialist to develop additional functionality for the computer software that supports the online functions and we hope they are able to complete this task imminently.

We will be sending an email to all Edge account holders once the system has been activated and will post an update on the website. The system will then be held open until the end of February 2009.


We are working towards the issuing of statements to customers before the Christmas postal deadlines. Accompanying the statements will be a letter explaining the treatment on certain accounts such as fixed term deposits, which was explained in my last update.

Interim Payments

The Isle of Man Treasury is actively exploring the possibility of making an interim payment to depositors of the Bank. We continue to assist them and hope to be in a position to provide a more detailed update next week when the details have been finalised.


As previously, the best way to make contact is to write to the bank or to email branch@singers.co.im. If you need to telephone the bank, please use the main switchboard number +44 1624 699222.


Mike Simpson

Joint Liquidator Provisionally