25 MAY 2011

KSFUK

The Administrators have today paid a sixth dividend of 5p in the pound, which means that we will shortly receive a payment from them of approximately £12.3 million.

Parental Guarantee claim

A hearing took place in the Icelandic Supreme Court on 24 May 2011 to consider our appeal in the case concerning the validity of the parental guarantee. The oral hearing was convened at short notice and is very unusual, as most appeals only involve a review of written evidence. Also unusual is that it was heard in front of five appeal judges instead of the usual three. I think this is an indication of the seriousness with which our appeal is been taken and is a positive sign.

In broad terms, our appeal was based on the grounds that we disagree with the finding that the signatory of the guarantee did not have the authority to bind the parent and that the case cited as a precedent to support this argument when the case was heard in the District Court is not a valid precedent. Further, we have reiterated the evidence previously presented which, in our view, makes it clear that the parent was fully aware of the guarantee and for the requirement for it to be in place to enable the purchase of Derbyshire Offshore.

There is currently no indication as to when the judgment will be received. However, we are hopeful that it will be handed down before the summer recess.

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