21 DECEMBER 2009

Parental Guarantee

We have been asked by a number of parties to give guidance to creditors/depositors regarding whether they should be making individual claims on Kaupthing Bank hf in respect of its parental guarantee to Kaupthing Singer and Friedlander (Isle of Man) Limited. As you will appreciate, it is not the joint liquidators' duty to give advice to creditors in relation to the making of claims in that liquidation, particularly since the Joint Liquidators might have a conflict of interest in doing so, since any successful claim by an individual creditor of KSFIOM would reduce the amount received by the Joint Liquidators for the benefit of the creditors of KSFIOM as a whole. Accordingly, if creditors wish to seek such advice then it is open for them to do so at their own cost.

However, in the spirit of being as helpful as we can, we can see no downside to creditors if they wish to make individual claims in respect of the parental guarantee. We would reiterate the statement made in the posting on the website on December 18, that it may well be that individual claims are rejected by the winding up committee of Kaupthing Bank hf, however by making such a claim creditors individual rights are, as a minimum, preserved.

The Joint Liquidators would again emphasise that the above does not represent legal advice, and cannot be relied upon by creditors of KSFIOM, who should take their own advice in relation to any claim that they may wish to bring against Kaupthing Bank hf in their personal capacity.


Mike Simpson

Joint Liquidator