24 OCTOBER 2008

Adjournment of winding up petition

At a hearing at the Isle of Man High Court today, before Deputy Deemster Corlett the joint petition of the Bank and the Financial Supervision Commission was adjourned until 10am, 27 November 2008 at the request of the Isle of Man Treasury.

The Isle of Man Treasury informed the court that high level discussions were taking place between the UK Treasury (which is representing the interests of the Isle of Man) and the Icelandic Government which now owns Kaupthing Bank hf.

As liquidator provisionally and an officer of the court, I would stress that my position was neutral with regard to the request for an adjournment. Only one creditor opposed the application for an adjournment. Deputy Deemster Corlett noted that " the overwhelming majority of creditors supported the Treasury's application for an adjournment".

The period up to 27 November 2008

It was made clear to the Court that I will continue to pursue my duty to preserve and protect the assets of the Bank. I will also continue to see parties interested in purchasing all or part of the Bank's assets.

With regard to customer queries, we are continuing to make progress in our discussions with the Administrators' of Kaupthing Singer & Friedlander Limited in the UK and in establishing the status of certain transactions which were in transit at the date of appointment of either myself or the Administrators. This has included seeking legal advice from Counsel as to the treatment of certain transactions.

Where we have established the position with regard to specific queries, we have begun the process of responding by letter to the individual queries we have received. We anticipate that this process will speed up during the next ten days but is dependant upon us receiving both the relevant information from the UK Administrators and on us then obtaining legal advice as to the proper treatment of those transactions.

I understand there has been some suggestion that "blocked" funds have been released to customers of the Bank. I can only advise that we are not aware of any such payments.

Contacts

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

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