2011 Updates

07 DECEMBER 2011

Cash Position

Attached is the summary of cash balances held at 30 November 2011.

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 Cash Position

Cash balances decreased by approximately £83.4 million during the month. Loan repayments, interest and other income totalled £1.8 million. The sixth dividend and catch-up distributions were £85.1 million and expenses were £0.1 million.

Loan Book

Attached is the summary of the loan book position at 30 November 2011.

PDF

  Loan Book

During November 2011, four facilities were redeemed in part realising £1.5 million overall.

The loan book details shown have been converted to Sterling using exchange rates as at 31 October 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 30 November 2011, and we have calculated that they would add a further £1.1 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US dollar receipts were matched against the relevant loans included in the summary at 30 November 2011, and we have calculated that they would add a further £6,000 to the value of the receipts due on these loans. 

Comments by Icelandic Minister of Economic Affairs

On 27 October 2011, Árni Páll Árnason, the Icelandic Minister of Economic Affairs, made a statement where he implied that no depositors in Icelandic owned banks would ultimately lose any money as a result of the collapse of the banks in 2008. I am aware that this comment has caused consternation among creditors and can confirm that I have written to the Minister to draw his attention to the plight of creditors of KSFIOM.

Website Upgrade

The website will be re-formatted shortly in order to make it easier to navigate as it has become unwieldy over time. The website may be off-line for a short period while these changes are being made.

08 NOVEMBER 2011

Cash Position

Attached is the summary of cash balances held at 31 October 2011.

PDF

 Cash Position

Cash balances increased by approximately £25.3 million during the month. Loan repayments, interest and other income totalled £13.2 million. The distribution from KSFUK was £12.3 million and expenses were £0.2 million.

Loan Book

Attached is the summary of the loan book position at 31 October 2011.

PDF

 Loan Book

During October 2011, four facilities were redeemed in full and five in part realising £12.8 million overall.

The loan book details shown have been converted to Sterling using exchange rates as at 31 October 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 31 October 2011, and we have calculated that they would add a further £0.9 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US dollar receipts were matched against the relevant loans included in the summary at 31 October 2011, and we have calculated that they would add a further £16,730 to the value of the receipts due on these loans.

Sixth Distribution

The Joint Liquidators are pleased to announce that a sixth distribution of 9.6 pence in the £ will be paid on 11 November 2011 to all creditors whose claims have been agreed. This will bring the total distributions to date to 83.2 pence in the £.

There are some cases where payments are being held over due to queries over the amounts claimed, payment details or signatures. We will continue to work through these queries as quickly as possible so that catch-up payments can be made to the relevant creditors.

We are aware that there are a number of potential creditors who have not yet submitted a claim, either directly or through the Depositors Compensation Scheme. We invite those creditors to submit their claims to the liquidation as soon as possible so that they can receive the distributions to which they are entitled. The Manager of the Depositors Compensation Scheme has stated that no new claims are being accepted by the DCS since 27 November 2010. Further details can be found at www.dcs.im.

13 OCTOBER 2011

Next dividend

Attached below is a copy of the notice for the next dividend which has been published in the press and sent to all known creditors who have not yet submitted a claim.

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 Notice of Sixth Dividend

In accordance with the advertisement, creditors who have not yet submitted a Proof of Debt form are required to return the completed form to the Joint Liquidators prior to 21 October 2011 in order to be included in the sixth dividend.

For claimants with an admitted claim directly in the liquidation, if you wish to change the bank account details for payment of your dividends please contact the bank prior to 28 October 2011. Any request for a change in payment details after this date may result in a delay to the payment of the sixth dividend to you. The Joint Liquidators will only change a claimant’s payment details upon receipt of an original, signed document – photocopied, faxed or scanned documents will not be accepted.

As previously advised, dividend levels can only be determined once cash has been received. We will distribute as much cash as is available at the point of declaration, which based on cash currently in hand will be not less than 9.5p in the £.

07 OCTOBER 2011

Cash Position

Attached is the summary of cash balances held at 30 September 2011.

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  Cash Position

Cash balances increased by approximately £3.3 million during the month. Loan repayments, interest and other income totalled £3.9 million. Distributions relating to catch-up dividends were paid out to creditors totalling £0.1 million and liquidation expenses were £0.5 million.

Loan Book

Attached is the summary of the loan book position at 30 September 2011.

PDF

  Loan Book

During September 2011, two facilities were redeemed in full and one in part realising £3.7 million overall. Set-off was agreed in respect of one facility resulting in a reduction in the outstanding loan book of £0.2 million, and a corresponding reduction in creditors.

The loan book details shown have been converted to Sterling using exchange rates as at 30 September 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 30 September 2011, and we have calculated that they would add a further £1.0 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US dollar receipts were matched against the relevant loans included in the summary at 30 September 2011, and we have calculated that they would add a further £19,000 to the value of the receipts due on these loans.

30 SEPTEMBER 2011

Agreement of creditors’ claims

The following statistics show the current position regarding the agreement of creditors’ claims:

Figures

If you compare these figures to the summary published on 31 January 2011, you will note that a further 282 claims have been agreed in the last eight months with a total value of £3m. The total value of agreed claims is now £891m. Since that update, a further 51 claims with a total value of £1m have been rejected in full and 17 claims with a total value of approximately £200,000 have been rejected in part, so the current position is that 64 claims worth a total of £12m have been wholly rejected and 57 claims have been rejected in part, the rejected portions totalling approximately £500,000.

The increase in the number of claimants repaid in full through the Early Payment Scheme from the website update of 31 January 2011 of 1,475 to 1,503 in the table above is due to depositors advising the Joint Liquidators that they consider they were fully repaid through this Scheme and would not be submitting any additional claim in the liquidation.

The reduction in the value of Proof of Debt forms approved and processed from the website update of 31 January of £567m to £564m in the table above is due to a number of depositors who have successfully applied for compensation through the Depositors’ Compensation Scheme after their claim through the liquidation had been admitted for dividend. We have been advised by the Scheme Manager that the value of any compensation paid was reduced by the value of any dividends paid directly to the depositor in the liquidation. The value of Proof of Debt forms approved and processed of £564m includes 25 admitted claims with a value of £0.4m who have applied for compensation through the DCS but have not completed the DCS approval process.

The figures in the above table are stated after rejections and also after set-offs, so the current figure against which the percentage of distributions is calculated is £905m, which is the total of approved claims, claims not yet approved and claims which are expected but have not yet been received.

Claims not approved and claims not received

Any creditors who have not yet submitted a claim are urged to do so as soon as possible so that they can receive the distributions to which they are entitled.

Any creditors who have submitted a claim through either the Depositors’ Compensation Scheme or directly in the liquidation but who have not yet received the dividends or compensation to which they are entitled are urged to contact the bank via the details below in order to resolve the outstanding issues with their claim.

Depositors’ Compensation Scheme

The Scheme Manager has advised that the deadline for new claims to be accepted by the DCS has now passed.

13 SEPTEMBER 2011

Cash Position

Attached is the summary of cash balances held at 31 August 2011.

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  Cash Position

Cash balances increased by approximately £11.0 million during the month. Loan repayments and interest totalled £11.4 million. Distributions relating to catch-up dividends were paid out to creditors totalling £0.2 million and liquidation expenses were £0.2 million.

Loan Book

Attached is the summary of the loan book position at 31 August 2011.

PDF

 Loan Book

During August 2011, 2 facilities were redeemed in full and 5 in part realising £10.8 million overall.

The loan book details shown have been converted to Sterling using exchange rates as at 31 August 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 31 August 2011, and we have calculated that they would add a further £0.5 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 31 August 2011, and we have calculated that they would add a further £0.1 million to the value of the receipts due on these loans. 

12 AUGUST 2011

Report to Creditors

Attached is a Report to Creditors for the period from 10 January 2011 to 9 July 2011.

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 Report to Creditors

09 AUGUST 2011

Cash Position

Attached is the summary of cash balances held at 31 July 2011

PDF

 Cash Position

Cash balances increased by approximately £12.3 million during the month. Loan repayments and interest totalled £12.6 million. Distributions relating to catch-up dividends were paid out to creditors totalling £0.1 million and liquidation expenses were £0.2 million.

Loan Book

Attached is the summary of the loan book position at 31 July 2011.

PDF

 Loan Book

During July 2011, two facilities were redeemed in full and four in part realising £12.4 million overall.

The loan book details shown have been converted to Sterling using exchange rates as at 29 July 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 31 July 2011, and we have calculated that they would add a further £0.7 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 31 July 2011, and we have calculated that they would add a further £0.1 million to the value of the receipts due on these loans.

06 JULY 2011

Cash Position

Attached is the summary of cash balances held at 30 June 2011.

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 Cash Position

Cash balances increased by approximately £0.9 million during the month. Loan repayments and interest totalled £3.1 million. Distributions relating to catch-up dividends were paid out to creditors totalling £0.2 million and liquidation expenses were £2.0 million.

Loan Book

Attached is the summary of the loan book position at 30 June 2011.

PDF

 Loan Book

During June 2011, three facilities were redeemed in full and one in part realising £2.9 million overall.

The loan book details shown have been converted to Sterling using exchange rates as at 30 June 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 30 June 2011, and we have calculated that they would add a further £0.1 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 30 June 2011, and we have calculated that they would add a further £0.1 million to the value of the receipts due on these loans.

29 JUNE 2011

Loan Trust Proposal

The Committee of Inspection wish to make the following statement.

Kaupthing Singer & Friedlander (Isle of Man) Limited’s (KSFIOM) Committee of Inspection (CoI) notes the recent proposal issued by the KSFIOM Depositor Action Group for the establishment of a loan trust sponsored by the Manx and UK governments. On the basis that the costs of its implementation are borne by the respective authorities (and not by other creditors of KSFIOM), the majority of CoI members commend the loan trust proposal to the relevant authorities as an expedient and low-cost method of swiftly ending the uncertainty and delay in returning retail creditors’ funds in the bank to them.

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 KSFIOM DAG Loan Trust Proposal

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 KSFIOM LTP letter to IOM Treasury Minister

15 JUNE 2011

Parental Guarantee

Attached is an English translation of the judgment of the Supreme Court of Iceland in respect of the parental guarantee, which affirms the right of KSFIOM to make a general claim against Khf.

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 Supreme Court Judgment – English Translation

The format is from the Supreme Court in Iceland and the verdict dated 10 June can be found on pages 1 to 6. The subsequent pages contain the original ruling dated 10 March 2011.

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.

08 JUNE 2011

Cash Position

Attached is the summary of cash balances held at 31 May 2011.

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 Cash Position

Cash balances increased by approximately £12.2 million during the month. A dividend from KSFUK of £12.3 million was received on 27 May. Loan repayments and interest totalled £0.8 million. Distributions relating to catch-up dividends were paid out to creditors totalling £0.5 million and liquidation expenses were £0.4 million.

Loan Book

Attached is the summary of the loan book position at 31 May 2011.

PDF

 Loan Book

During May 2011, one facility was redeemed in full and two in part realising £0.7 million overall.

The loan book details shown have been converted to Sterling using exchange rates as at 31 May 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 31 May 2011, and we have calculated that they would add a further £0.7 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 31 May 2011, and we have calculated that they would add a further £0.1 million to the value of the receipts due on these loans.

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.

11 MAY 2011

Cash Position

Attached is the summary of cash balances held at 30 April 2011.

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 Cash Position

Cash balances decreased by approximately £96.0 million during the month. Loan repayments and interest totalled £15.0 million. Distributions relating to the fifth dividend were paid out to creditors totalling £110.9 million and liquidation expenses were £0.1 million.

Loan Book

Attached is the summary of the loan book position at 30 April 2011.

PDF

 Loan Book

During April 2011, 6 facilities were redeemed in full and 2 in part realising £14.9 million overall.

The loan book details shown have been converted to Sterling using exchange rates as at 28 April 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 30 April 2011, and we have calculated that they would add a further £0.4 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 30 April 2011, and we have calculated that they would add a further £0.2 million to the value of the receipts due on these loans.

Committee of Inspection

Minutes of the Committee of Inspection meeting held on 29 March 2011 are attached.

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 Committee of Inspection Minutes

08 APRIL 2011

Cash Position

Attached is the summary of cash balances held at 31 March 2011. .

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 Cash Position

Cash balances increased by approximately £5.2 million during the month. Loan repayments and interest totalled £5.9 million. £0.3m was realised from closing out currency options on loans repaid early. Distributions relating to catch-up dividends were paid out to creditors totalling £0.8 million and liquidation expenses were £0.2 million.

Loan Book

Attached is the summary of the loan book position at 31 March 2011.

PDF

 Loan Book

During March 2011, three facilities were redeemed in full and four in part realising £5.6 million overall.

The loan book details shown have been converted to sterling using exchange rates as at 31 March 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 31 March 2011, and we have calculated that they would add a further £0.6 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 31 March 2011, and we have calculated that they would add a further £0.1 million to the value of the receipts due on these loans.

We have received a number of queries from creditors regarding the concentration of loans in a small number of high value positions. At 8 October 2008, the ten largest loan positions totalled £216 million, representing 52% of the total loan book. Of those loans, four have been repaid in full and five have been repaid in part, the remaining outstanding balances being £91 million. The current ten largest loans total £113 million, which is 66% of the total value of the remaining loans. This percentage will gradually increase over time as the number of outstanding loans reduces.

06 APRIL 2011

Fifth Distribution

The Joint Liquidators are pleased to announce that a fifth distribution of 12.5 pence in the £ will be paid on 8 April 2011 to all creditors whose claims have been agreed. This will bring the total distributions to date to 73.6 pence in the £.

There are some cases where payments are being held over due to queries over the amounts claimed, payment details or signatures. We will continue to work through these queries as quickly as possible so that catch-up payments can be made to the relevant creditors.

We are aware that there are a number of potential creditors who have not yet submitted a claim, either directly or through the Depositors Compensation Scheme. We invite those creditors to submit their claims to the liquidation as soon as possible so that they can receive the distributions to which they are entitled. The Manager of the Depositors Compensation Scheme has stated that no new claims are being accepted by the DCS since 27 November 2010. Further details can be found at www.dcs.im.

24 MARCH 2011

Parental Guarantee

I can confirm that, after consultation with legal advisors and the Committee of Inspection, we have lodged an appeal to the Supreme Court of Iceland in respect of the ruling handed down by the Reykjavik District Court which rejected the validity of the parental guarantee.

It has always been the view of the Joint Liquidators that KSFIOM benefited from an enforceable Parental Guarantee issued by Kaupthing Bank hf. This view is shared by the directors of KSFIOM, a number of former senior members of staff at Kaupthing Bank hf ( including the former Group Treasurer) and most, if not all, creditors of KSFIOM. A guarantee dated 17 September 2007 was issued by Kaupthing Bank hf and signed by Ingolfur Helgason, the CEO of the bank in Iceland. It provides expressly that, as the parent company of KSFIOM, Kaupthing Bank hf ,

“…guarantees to discharge the liabilities of [its subsidiary KSFIOM] insofar as [KSFIOM] is unable to discharge such liabilities as have been validly asserted out of it’s own assets…”.

In reliance upon the enforceability of the guarantee the Joint Liquidators, on behalf of KSFIOM, lodged a “shortfall claim” against Kaupthing Bank hf. This claim was not accepted by the Kaupthing Bank hf Resolution Committee who referred the claim to the District Court in Reykjavik.

Given the significance of the guarantee and after taking Icelandic legal advice the Joint Liquidators sought an order that the guarantee was binding on Kaupthing Bank hf for the full amount of the claim lodged by KSFIOM. Alternatively, if it was determined that the guarantee was signed with insufficient authority to be binding, a claim was made for damages against Kaupthing Bank hf for the loss caused by its employee Ingolfur Helgason.

Unfortunately the District Court in Reykjavik has rejected both of the claims made by KSFIOM. In a ruling dated 10 March 2011, the Court held, in summary, that Ingolfur Helgason did not have the authority necessary to bind the board without the board being separately advised of and approving the guarantee. The Court further held that the evidence indicated that the Board was not aware of the guarantee. Secondly the Court held that KSFIOM could not succeed in its damages claim. They held that KSFIOM may have understood that Kaupthing Bank hf board approval was required before the guarantee would be binding and that in addition there was no reason to accept that it should be liable to compensate for losses allegedly due to Ingolfur Helgason’s lack of authorisation in signing the guarantee.

The Joint Liquidators are very disappointed by the Court’s ruling and in particular with certain factual findings upon which the ruling appears to have been based. Having taken further Icelandic legal advice and discussed the matter with the Committee of Inspection an appeal has been lodged with the Icelandic Supreme Court.

It is not possible to provide further details of the appeal process at this stage but a further update will be provided as soon as possible including an indication of the likely time frame within which the appeal will be heard.

16 MARCH 2011

Parental Guarantee

Attached is an English translation of the ruling by the judge in the Reykjavik District Court on the parental guarantee.

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 Parental Guarantee Ruling

This translation covers the ruling only and is not a transcript of the whole hearing, so it does not contain details of all the evidence presented at Court. We are in the process of consulting with our legal advisors and the Committee of Inspection regarding an appeal to the Icelandic Supreme Court.

10 MARCH 2011

Parental Guarantee

The ruling has been handed down in the Reykjavik District Court in the case regarding the parental guarantee. The Court has ruled that the parental guarantee is not valid. The ruling will be posted on this website once the official English translation has been received. We have two weeks in which to lodge an appeal and a decision will be made on this in the next few days once we have had time to consider the ruling.

This ruling is extremely disappointing and I know that many creditors will be outraged by it.

07 MARCH 2011

Cash Position

Attached is the summary of cash balances held at 28 February 2011.

PDF

 Cash Position

Cash balances increased by approximately £83.8 million during the month. Loan repayments and interest totalled £62.6 million and the catch-up dividend from KSFUK was £21.8 million. Distributions relating to catch-up dividends were paid out to creditors totalling £0.6 million.

Loan Book

Attached is the summary of the loan book position at 28 February 2011.

PDF

 Loan Book

During February 2011, six facilities were redeemed in full and five in part realising £54.5 million overall.

The loan book details shown have been converted to sterling using exchange rates as at 28 February 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 28 February 2011, and we have calculated that they would add a further £1.5 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 28 February 2011, and we have calculated that they would add a further £0.4 million to the value of the receipts due on these loans.

Next dividend

Attached below is a copy of the notice for the next dividend. We are required by Isle of Man insolvency law to advertise for potential creditors to submit their claim in the liquidation prior to the declaration and payment of a dividend.

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 Next dividend

In accordance with the advertisement, creditors who have not yet submitted a Proof of Debt form are required to return the completed form to the Joint Liquidators prior to 25 March 2011 in order to be included in the fifth dividend.

For claimants with an admitted claim directly in the liquidation, if you wish to change the bank account details for payment of your dividends please contact the bank prior to 31 March 2011. Any request for a change in payment details after this date may result in a delay to the payment of the fifth dividend to you. The Joint Liquidators will only change a claimant’s payment details upon receipt of an original, signed document – photocopied, faxed or scanned documents will not be accepted.

As previously advised, dividend levels can only be determined once cash has been received. We will distribute as much cash as is available at the point of declaration, which based on cash currently in hand will be not less than 12p in the £.

02 MARCH 2011

KSFUK claim

I can confirm that the bank’s claim in the administration of Kaupthing Singer & Friedlander Limited (in Administration) has been agreed at £246.1m. A catch up dividend of £21.8m has now been received, which brings total receipts in respect of this claim to £130.4m, being 53 pence in the £. There is no further update from the Administrators regarding their estimated outcome, which remains at 75 to 84 pence in the £.

11 FEBRUARY 2011

Report to Creditors

Attached is a Report to Creditors for the period from 10 July 2010 to 9 January 2011.

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 Report to Creditors

09 FEBRUARY 2011

Cash Position

Attached is the summary of cash balances held at 31 January 2011.

PDF

 Cash Position

Cash balances increased by approximately £17.9 million during the month. Loan repayments and interest totalled £17.6 million, liquidation expenses were £0.2m and some option contracts in respect of currency loans that were repaid early were closed out raising £0.6m. Distributions relating to catch-up dividends were paid out to creditors totalling £0.1 million.

Loan Book

Attached is the summary of the loan book position at 31 January 2011.

PDF

 Loan Book

During January 2011 five facilities were redeemed in full realising £17.2 million. Partial capital redemptions of £0.1 million were also received.

The loan book details shown have been converted to Sterling using exchange rates as at 31 January 2011.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 31 January 2011, and we have calculated that they would add a further £1.3 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 31 January 2011, and we have calculated that they would add a further £0.2 million to the value of the receipts due on these loans.

31 JANUARY 2011

Agreement of creditors’ claims

The following statistics show the current position regarding the agreement of creditors’ claims:

Figures

If you compare these figures to the summary published on 17 September 2010, you will note that a further 92 claims have been agreed in the last four months with a total value of £1m. The total value of agreed claims is now £888m. Since that update, no further claims have been rejected, so the current position is that 13 claims worth a total of £11m have been wholly rejected and 40 claims have been rejected in part, the rejected portions totalling approximately £300,000.

The increase in the number of claimants repaid in full through the Early Payment Scheme from the website update of 17 September 2010 of 1,458 to 1,475 in the table above is due to depositors advising the Joint Liquidators that they consider they were fully repaid through this Scheme and would not be submitting any additional claim in the liquidation.

The reduction in the value of Proof of Debt forms approved and processed from the website update of 17 September 2010 of £592m to £567m in the table above is due to a number of depositors who have successfully applied for compensation through the Depositors’ Compensation Scheme after their claim through the liquidation had been admitted for dividend. We have been advised by the Scheme Manager that the value of any compensation paid was reduced by the value of any dividends paid directly to the depositor in the liquidation. The value of Proof of Debt forms approved and processed of £567m includes 193 admitted claims with a value of £3.9m who have applied for compensation through the DCS but have not completed the DCS approval process.

The figures in the above table are stated after rejections and also after set-offs, so the current figure against which the percentage of distributions is calculated is £905m, which is the total of approved claims, claims not yet approved and claims which are expected but have not yet been received.

Depositors’ Compensation Scheme

The Scheme Manager has advised that the deadline for claims to be accepted by the DCS has now passed.

13 JANUARY 2011

Cash Position

Attached is the summary of cash balances held at 31 December 2010.

PDF

 Cash Position

Cash balances decreased by approximately £55.2 million during the month. Loan repayments and interest totalled £16.9 million, the fifth dividend from Kaupthing Singer & Friedlander Limited (In Administration) was £16.4m and liquidation expenses were £0.2m. Distributions including the fourth dividend as well as catch-up dividends, were paid out to creditors totalling £88.3 million.

Loan Book

Attached is the summary of the loan book position at 31 December 2010.

PDF

 Loan Book

During December 2010 3 facilities were redeemed in full realising £16.5 million. Partial capital redemptions of £0.1 million were also received.

The loan book details shown have been converted to sterling using exchange rates as at 31 December 2010.

The Joint Liquidators have purchased currency options to hedge certain of the future loan receipts. Sterling options purchased to hedge future Euro receipts were matched against the relevant loans included in the summary at 31 December 2010, and we have calculated that they would add a further £1.5 million to the value of the receipts due on these loans. Sterling options purchased to hedge future US Dollar receipts were matched against the relevant loans included in the summary at 31 December 2010, and we have calculated that they would add a further £0.1 million to the value of the receipts due on these loans.