08 FEBRUARY 2010

Committee of Inspection meeting on 4 February 2010

A meeting of the Committee of Inspection was held by telephone at 2.30pm on Thursday 4 February 2010 to continue discussions regarding the rejection of our claim under the parental guarantee.

The Liquidators confirmed that the objection to the rejection of the company's claim against Kaupthing hf had been lodged with the Winding Up Committee in advance of the Creditors' Meeting as required and updated the Committee on discussions with the Winding Up Committee on the matter. The Liquidators' Icelandic lawyers explained the objection process and the legal issues which need to be addressed. The primary focus is now on gathering all available documentary evidence to support our assertion that the parental guarantee was properly authorised by Kaupthing hf. This assertion will be pursued vigorously. Alternative strategies to maximise the return for creditors were also discussed for pursuit in the event that our objection fails. If the matter cannot be agreed with the Winding Up Committee, it will go to Court in Reykjavik for a decision. Preliminary indications are that the Court process would take several months and it is possible that a decision would not be reached until 2011.

Further updates will be released on this matter as information becomes available, however, it is likely to be some months before it is resolved.

Contacts

The best way to make contact is to write to the bank or 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