30 JANUARY 2009

This update follows yesterday's Court hearing on the winding up petition and the telephone conference calls with creditors, as discussed with the Depositors Action Group.

Court hearing

In preparation for the Court Hearing on 29 January 2009, I submitted a further Affidavit dated 28 January 2009 which responded to some of the comments made in the Affidavit submitted by Mr Lovatt of AlixPartners to the Court on 26 January 2009. My further Affidavit is now available for viewing on the website here. I can only emphasise that my principal concern is that the best interests of creditors are served, whether this is through a liquidation of the Company or by a Scheme of Arrangement.

Following the hearing, the Court has ordered a further adjournment of the hearing of the winding up petition for 21 days until 19th February 2009, with Affidavits to be filed by the Treasury addressing certain issues referred to by Deputy Deemster Corlett and to be served on the other Noticed Parties by 12 February 2009.

I am seeking confirmation as to whether a transcript of the Judgment by Deputy Deemster Corlett can be placed on the website and hope to be in a position to provide this early next week.

Provision of further information regarding the Company's assets

Since the submission of my Affidavit to Court, I can confirm that a further amount of £2m has been realised in respect of the CD's. The remaining CD's, totalling £35m are, as indicated previously, subject to ongoing legal disputes with regard to set-off and are in the hands of lawyers.

At the Court hearing, a request was made on behalf of certain creditors for further information to be provided. It was explained to the Court that I am constrained in the amount of information I can share with creditors due to issues of commercial sensitivity and legal privilege.

The only area where I feel that I may be able to share some further information is in respect of the make up of the loan book and its maturity profile. I will be seeking to provide further information on the website at the end of next week in this regard but would stress that this will represent the extent of the information I can provide.

Telephone conference dial in details

Following discussions with the Depositors Action Group I have set up a fourth conference call which will take place on Monday 9 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.

https://cossprereg.btci.com/prereg/key.process?key=P3HVQPLJR

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 12 December 2008 has now been made available on the KSFIOM website.

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

Joint Liquidator Provisionally 

 

The website for Kauthing hf is: www.kaupthing.com

The website for Kaupthing Singer & Friedlander in the UK is www.kaupthingsingers.co.uk

Various government websites that may be of interest are:

www.gov.im/fsc

www.gov.im/treasury

www.tynwald.org.im

The Depositors Action Group is:

www.ksfiomdepositors.org

Please note that neither the Joint Liquidators Provisionally, nor KSFIOM, are responsible for the content of these external websites. Only information placed on www.kaupthingsingers.co.im, has been formally agreed and issued by the Joint Liquidators Provisionally.