21 JANUARY 2010

Claim against Kaupthing hf

As previously notified, the Joint Liquidators have lodged a claim with the Winding Up Committee of Kaupthing hf. We have been registered for the creditors meeting which will be held in Reykjavik on 29 January. We understand that some depositors who submitted personal claims directly to the Winding Up Committee have received letters advising that their claims have not yet been recognised and that they will be determined at a later date. The Winding Up Committee received approximately 29,000 claims and we do not know whether creditors who have received such letters are more likely to have their claims rejected, or whether it is purely as a result of logistical issues due to the large number of claims. Creditors who have made direct claims will receive information directly from the Winding Up Committee and not from us. We will keep creditors updated as to the progress of our claim, however, we have been warned that it could be several months before the determination of our claim is finalised.

Cash balances

We have received a number of queries regarding the level of cash balances held, as creditors are understandably concerned that available cash is distributed to them on a timely basis. Cash held at the moment is approximately £130 million. Of this amount, £75 million represents first and second distributions in respect of claims which have not yet been agreed and other claims which are anticipated but have not yet been made. A further £31 million is the rump of cash received from the sale of shares during 2009, which cannot be made available for distribution until June 2010. Of the remaining balance, £2 million is due to preferential creditors, and £11 million is reserved to meet future liquidation and running costs. This leaves £11 million which would currently be available for distribution. It is currently intended that the payment of a further distribution will be considered in June when the money from the sale of shares becomes available.


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