20 FEBRUARY 2009

This update follows the Court hearing held on Thursday 19 February 2009 and provides further information requested by creditors relating to both the Scheme of Arrangement as well as an overview of the possible outcome of the maturity of the loan book over time.

Court hearing on 19 February 2009

In preparation for the Court hearing on 19 February 2009, I submitted a third Affidavit dated 18 February 2009 which responded to some of the comments made in the fourth Affidavit submitted by Mr David Lovett of Alix Partners and the third Affidavit submitted by Mr Allan Bell, Isle of Man Treasury Minister, on 12 February 2009. My most recent Affidavit is now available for viewing on the website here. Once again, I wish to emphasise that my principal concern as Liquidator Provisionally is to protect the interests of all creditors, be that through the liquidation of the Company or by a Scheme of Arrangement.

Following the Court hearing, the Court has ordered an adjournment of the hearing of the winding up petition for 49 days until Thursday 9 April 2009 to allow the Treasury to prepare the Scheme of Arrangement.

A signed transcript of the Judgment by Deputy Deemster Corlett will be placed on the website as soon as it is received.

Timetable for Scheme of Arrangement

The timetable as proposed by Treasury is detailed below. Additional comments (as highlighted in square brackets) are to assist creditors' understanding.


Item Action When
1 · Resolve all outstanding legal issues
· Draft: (i) Scheme Document, (ii) Explanatory Statement, (iii) Proxy Forms, (iv) Notices, (v) Claim Forms, (vi) Petition, and (vii) Affidavit(s) in Support 
· Resolve position with Banks and draft underlying participation agreement
· Obtain Tynwald conditional amendment to DCS
1 February to 23 March
2 File Petition and Evidence in Support Week commencing 30 March
3 Ex Parte Hearing for Directions to Call Scheme Meeting [Leave to convene the meeting of creditors - Court date 9 April 2009.] Week commencing 6 April
4 Notices of Scheme Meeting to be sent to Creditors [Creditor road shows would be held in this period.] Week commencing 13 April
5 Adjudication of claim forms for voting purposes  
6 Record Date [This will be the date (if applicable) at which currency conversion will take place as well interest and set off applied.] Week commencing 11 May (shortly prior to Scheme Meeting)
7 Scheme Meeting [Meetings of creditors to vote on Scheme of Arrangement. In order to approve the Scheme more than 50 percent in number and 75 percent in value of those voting in each class of creditors need to vote in favour.] Week commencing 11 May
8 Draft and file Affidavit reporting on outcome of Scheme Meeting Week commencing 18 May
9 Sanction Hearing [If approved by creditors (in the meeting of creditors), the Court has the power, if it believes the Scheme to be in the interests of all creditors, to sanction the Scheme.] Week commencing 25 May
10 File Court Order at FSC - Scheme takes effect [Following the effective date the Scheme Administrator will be in a position to agree claims.] Week commencing 25 May (immediately following sanction)
11 First Dividend/Lump Sum payment [the date at which the first dividends/creditors claims may be paid]. July/August


Possible maturity of the Loan Book

As requested by a number of creditors, below I have outlined a possible timeline for the maturity of the loan book. The estimate has been based on a number of factors, which are by no means certain at this time, and the numbers below cannot be taken as the likely realisation of such assets.


Kaupthing Singer & Friedlander (Isle of Man) Limited 
- In Liquidation Provisionally  
Loan book scheduled repayments 
- see notes  
Year   Scheduled repayment (£'000)  








Post 2013


Total repayments





  1. This data has been provided to creditors for information purposes only and should not be used for any other intention other than its intended purpose.
  2. The information is based on Company records provided.
  3. Exchange rates as at 8 October 2008 are assumed.
  4. No estimate has been provided for possible loan defaults.
  5. Only capital repayment schedules have been taken into account (interest payments, which will vary, have not been accounted for at this point).


Telephone conference dial in details

Following discussions with the Depositors Action Group I have set up a fifth conference call which will take place on Monday 23 February 2009 4:00 pm GMT.

I am making the access details generally available to depositors. If you wish to listen to the call, you will need to register in advance. Please click the link to register.


Participation will be on a listen only basis. The facility is provided by a third party and accordingly there is a cost per head for usage. Should any party register and then not attend the liquidation will be charged.

The number of lines is limited and I would request that only those depositors who are able to make the call register as we will make the audio recording of the call available on the website for those of you who are unable to attend. Should depositors choose this route to listen, it will significantly reduce the costs. The audio recording from the previous call on 9 February 2009 has now been made available on the KSFIOM website.


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