13 JUNE 2011

Parental Guarantee

We have been advised by the Supreme Court of Iceland that our appeal has been upheld and, therefore, the validity of the parental guarantee has been proven. The decision of the Supreme Court is final and cannot be appealed.

This is clearly a significant victory and is a major step forward in our attempt to recover money from the parent group for the benefit of creditors.

As you are aware, Kaupthing Bank hf is seriously insolvent, so this decision does not mean that the value of our claim is going to be paid in full, or that creditors of KSFIOM are guaranteed to be repaid in full. Indeed the Winding Up Committee has not yet given any indication as to the likely recovery and it may be some time before they are able to do so.

Those creditors of Kaupthing Bank hf who objected to the validity of the KSFIOM claim may also seek to challenge the value of the claim, so it may be some time before the value of our claim is finally agreed.

We will post an English translation of the judgment as soon as it is available.

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