13 OCTOBER 2008

What has happened?

On 9 October 2008 the Isle of Man Court made an Provisional Liquidation Order in relation to Kaupthing Singer and Friedlander (Isle of Man) Limited ("KS&FIOM"). Michael Simpson of PricewaterhouseCoopers was appointed as Liquidator Provisonally of KS&FIOM. 

Suspension of banking licence

On 8 October 2008, The Isle of Man Financial Supervision Commission suspended KS&FIOM's banking licence, accordingly KS&FIOM has ceased to trade as a bank. The provisional liquidation is necessary because of KS&FIOM's financial position and to ensure that the best interests of customers and creditors are served.

I will continue to keep you updated on this website with developments in respect of KS&FIOM and notify you if any changes are proposed to be made which will affect your current position. 

Operations

The purpose of the Liquidation Order is to seek to ensure the best long term solution can be adopted for customers and creditors. KS&FIOM will continue to manage its current loan book and the Liquidator Provisionally will be seeking to find purchasers for KS&FIOM's business and loan book to maximise recovery for customers and creditors. The existing mortgage/loan agreements of borrowers remain in place, the repayment profile of your mortgage/loans is not being changed and you are not being expected to refinance elsewhere. Borrowers should continue to make payments in the usual way.

The directors are still the directors of KS&FIOM, however the Liquidator Provisionally is ultimately responsible for KS&FIOM. However, the directors and existing management structure will remain in place and the directors and their existing management team will be assisting the Liquidator Provisionally with the day-to-day operations.

I will be working closely with management and my key objective achieving the best result for customers and creditors and to achieve this I will require your support during this process. As reported at the meeting held in the Isle of Man on 9 October 2008, I have entered preliminary negotiations with parties intereested in purchasing parts of the business, and have instructed lawyers in London and Iceland to assist me in attempting to receive assets of the bank currently held in those locations.

I shall keep you as fully informed of the situation via this website as I am able as matters progress.


Mike Simpson

Liquidator Provisionally of Kaupthing Singer & Friedlander (Isle of Man) Limited