26 JANUARY 2010

Committee of Inspection meeting on 25 January 2010

A meeting of the Committee of Inspection was held by telephone at 3pm on Monday 25 January 2010 to discuss the rejection of our claim under the parental guarantee, and the announcement by the Administrators of KSFUK that they intend to sell off their loan book.

  • Claim against Kaupthing hf

It was noted that the claim made by the Joint Liquidators to the Winding Up Committee has been rejected in full. It is understood that the opinion of the Winding Up Committee is that they are not bound by the guarantee. Although unconfirmed, the Joint Liquidators believe that this is a reference to the WUC questioning whether the guarantee is legally binding on Kaupthing hf on the basis that the signatory to the guarantee was not a member of Kaupthing hf's Board. The Joint Liquidators will be robustly asserting the validity of the guarantee and confirm that an objection to the claim's rejection will be filed in advance of the creditors' meeting on 29 January 2010. In the meantime they are attempting to establish the detailed rationale for the rejection of the claim. The Joint Liquidators, in conjunction with the Committee of Inspection, are considering a range of strategies and will pursue the claim most vigorously in order to obtain the best return for creditors.

  • Sale of KSFUK loan book

It was reported in the UK press at the weekend that the Administrators of KSFUK are intending to sell their loan book. Understandably, this has generated a number of questions from creditors. It is not yet possible to assess the impact of such a sale, if it happens, on the return to creditors or the timing of that return. The Joint Liquidators continue to manage KSFIOM's loan book as it remains their current view that this will realise the best return for creditors. However, all options are open in respect of the realisation of the loan book and the market is being monitored to determine whether conditions are improving which may cause the Joint Liquidators to alter their current view.

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