Final Dividend

11 FEBRUARY 2020

I am pleased to report that I am now in a position to declare and pay the final dividend.

As previously advised, some creditors have had adjustments to the balance admitted for dividend which related to deferred interest. The deferred interest represents the uncapitalised interest earned on accounts at a rate in excess of 5% p.a. for the period from the last contractual interest payment date to 9 October 2008. Under Isle of Man law, dividends cannot be paid in respect of deferred interest until all creditors have been repaid 100% of the amounts due, excluding deferred interest, as at 9 October 2008.

This deferred interest will now be paid in full (if your claim was adjusted), together with an amount for statutory interest at a rate of not less than 1.5p in the £, to non preferential unsecured creditors.

The final dividend will be paid on 31 March 2020.

If your bank account details have changed since the tenth dividend in 2014 and you have NOT previously advised us then please complete and return this form by 29 February 2020.

If you are an Isle of Man taxpayer and have made application under Practice Note 159/09 ‘Taxation of Interest Due from Kaupthing Singer and Friedlander (Isle of Man) Ltd (in Liquidation)’ to defer tax due on interest credited in the past, you should contact the Income Tax Division to regularise your tax affairs and settle any amounts due.

Please note that the liquidator cannot give tax advice to creditors of the bank – it is up to the individuals concerned to take their own advice and make the necessary returns and disclosures to the relevant tax authorities.

Contacts
The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email iom_ksf@pwc.com (please note that this is a new address). If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator

Report to Creditors

3 FEBRUARY 2020

KSF report to creditors Jan 2020 the Report to Creditors for the period from 10 July 2019 to 9 January 2020.

Contacts
The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email iom_ksf@pwc.com (please note that this is a new address). If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator

23 JANUARY 2020 Cash Position

Click here for a summary of cash balances held at 31 December 2019.

Cash balances decreased by approximately £16,000 during the quarter. Income totalled £7,000. Liquidation expenses totalled £23,000, including legal fees of £11,730.

Isle of Man Freezing Orders and Final Distribution
The freezing orders related to a confiscation order issued by the Sheriffs’ Court in Glasgow, which was registered in the Isle of Man in 2018 in the sum of £1.3 million, under the Island’s proceeds of crime legislation. The registration was challenged by the Liquidator, and after proceedings and negotiations in the Isle of Man the Scottish Authorities have agreed to accept £345,404 from KSFIOM.

I will be writing to the creditors who will be paid directly by the liquidator in the next two weeks in relation to the final dividend. If you have claimed under either the Early Payment Schemes and/or The Isle of Man Depositors’ Compensation Scheme, then please contact the DCS Administrator using the below contact details:

Contact details for the DCS Scheme Administrator are
Website: https//www.dcs.im/
Email: dcs@kpmg.co.im
Phone: +44 1624 625 680

Postal Address: Isle of Man Depositors’ Compensation Scheme, PO BOX 201, Douglas, Isle of Man, IM99 1TR

Contacts
The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email iom_ksf@pwc.com (please note that this is a new address). If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator

Website, Cash Position and Final Dividend

Website

It has been necessary to move this website to a new platform, which is why the appearance of the website has changed. There has been no change to the content of the website.

Cash Position

Attached is the summary of cash balances held at 30 September 2019.

Click here for cash position

Cash balances decreased by approximately £15,000 during the quarter. Income totalled approximately £7,000 and liquidation expenses totalled approximately £22,000.

Final Dividend


As previously reported there are freezing orders in respect of some former KSFIOM customer accounts and there is a legal dispute as to whether these accounts should be confiscated or distributed to unsecured creditors. Therefore I cannot quantify the final amount available for distribution to unsecured creditors until this is resolved. The matter is in Court and I will update creditors as soon as the position is clarified.

Contacts
The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email ksf@iom.pwc.com . If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator



Report to Creditors

Attached is a Report to Creditors for the period from 10 January 2019 to 9 July 2019.

Report to Creditors

Contacts

The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email ksf@iom.pwc.com . If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator

Cash Position and Final Dividend

Cash Position

Attached is the summary of cash balances held at 30 June 2019.

Cash balances decreased by approximately £10,000 during the quarter. Income totalled £7,000. Legal expenses totalled £3,000. Other liquidation expenses totalled £14,000.

Click here for Cash Position

Final Dividend

It is intended that one further dividend will be paid to creditors in respect of each class of interest. As previously reported there are freezing orders in respect of some former KSFIOM customer accounts. The Isle of Man Attorney General is claiming that the money which was held in these accounts should be confiscated. I believe that is incorrect and that, as I have received no proof of debt in relation to these accounts, the money should be available for distribution to unsecured creditors. Therefore I cannot quantify the final amount available for distribution to unsecured creditors until this is resolved. The total amount involved is significant to the amount available for distribution. The matter is in Court and I will update creditors as soon as the position is clarified.

Contacts

The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email ksf@iom.pwc.com . If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator

Cash Position and Final Dividend

Cash Position

Attached is the summary of cash balances held at 31 March 2019.

Cash balances decreased by approximately £38,000 during the quarter. Income totalled £9,000. Dividends paid totalled £39,000. Other liquidation expenses totalled £8,000.

Click here for Cash Position

Final Dividend

It is intended that one further dividend will be paid to creditors in respect of each class of interest. The timing and amount of the dividend cannot yet be determined with certainty, as the freezing orders in respect of former KSFIOM customer accounts have not yet been satisfactorily resolved. I will update creditors as soon as the position is clarified.

Contacts

The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email ksf@iom.pwc.com . If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator

Report to Creditors

Attached is a Report to Creditors for the period from 10 July 2018 to 9 January 2019.

Click here for Report to Creditors

Destruction of pre-liquidation data

I applied to Court for permission to destroy all pre liquidation data, as in my view it is no longer required. The cost of preserving the data, potentially for six years after the end of the liquidation, would be significant and so impacts the calculation of the final distribution. The following order was issued by the Court on 14 January 2019.

Click here for Court Order

The order permits me to destroy KSFIOM’s books, papers and electronic data following payment of the final dividend in the liquidation, and to destroy my Liquidator’s books, paper and electronic records relating to KSFIOM after 5 years have expired following the date of dissolution of KSFIOM. As reported in my previous update the ability to destroy the considerable amounts of pre-liquidation books, papers and electronic data will increase the amount of cash I am able to distribute as the final dividend.

Final Dividend

It is intended that one further dividend will be paid to creditors in respect of each class of interest. The timing and amount of the dividend cannot yet be determined with certainty, as I have received several freezing orders in respect of former KSFIOM customer accounts. The problem that I have is that the freezing orders relate to accounts on which I have received no proof of debt, which means that until they are resolved I cannot quantify the final amount available for distribution to unsecured creditors. The total amount involved is significant to the amount available for distribution.

Creditors who have already had their proof of debt admitted by the Liquidator do not need to do anything further unless they claimed under the Early Payment Scheme and/or the Early Payment (No. 2) Scheme and subsequently received dividends direct from the Liquidator. These claimants will now receive their final dividend from the DCS Administrator, and will need to provide the DCS Administrator with such information as he requires to be able to make payments.

Contact details for the DCS Scheme Administrator are

  • Website https//www.dcs.im/
  • Email: dcs@kpmg.co.im
  • Phone: +44 1624 625 680
  • Postal Address: Isle of Man Depositors’ Compensation Scheme, PO BOX 201 , Douglas, Isle of Man, IM99 1TR

If you did not claim through the EPS or DCS, you will receive your final dividend direct from my team. As the team has not made dividend payments since 2014, we would ask you to check that the bank accounts that we have on file are still open. If you need to advise us of any changes, please contact us at the address below as soon as possible. We will need a letter (not an email) advising us of any changes and will need to contact you to check authenticity of any changes requested. If you do not advise us of changes and final dividend payments are returned, this will inevitably lead to delays in you receiving your payments.

Contacts

The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email ksf@iom.pwc.com . If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator

Cash Position

Attached is the summary of cash balances held at 31 December 2018.

Click here for Cash Position

Cash balances decreased by approximately £899,000 during the quarter. Income totalled £4,000. Liquidator expenses totalled £820,000. Legal expenses totalled £68,000. Other liquidation expenses totalled £15,000. The reason for the high level of expenses in this quarter is because final bills for liquidation and legal fees have been paid in advance so that the VAT thereon can be reclaimed and distributed to creditors. The liquidation fees cover the period from 1 April 2017 to the end of the liquidation.

Statutory interest and final dividend

I have applied to Court for permission to destroy all pre liquidation data, as in my view it is no longer required. The cost of preserving the data, potentially for six years after the end of the liquidation, would be significant and so impacts the calculation of the final distribution. We will proceed to finalise the calculation of the final distribution (comprising deferred and statutory interest) and will announce a date for payment as soon as possible.

Contacts

The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email ksf@iom.pwc.com . If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator

Statutory Interest

Further to the previous update on 5 October 2018, there was a hearing at the Isle of Man High Court on 30 October 2018 to consider matters relating to statutory interest. The Court Order issued following the hearing is attached.

Click here for Court Order

The Order instructs the Liquidator to pay statutory interest and/or deferred interest due to all depositors who claimed in the DCS and/or the EPS to the DCS, and statutory and/or deferred interest to all creditors who did not claim in the DCS or the EPS to those creditors. Regarding life insurance bondholders who claimed in the EPS, the Liquidator shall pay statutory interest direct to the insurance companies apart from amounts due to the Isle of Man Treasury in respect of it’s admitted proof of debt in respect of assignments made to it as set out in section 40 of the skeleton argument filed in support of the Liquidator’s application to the High Court and published on this website on 15 August 2018,

We will proceed to finalise the calculation of the final dividend (comprising deferred and statutory interest) and will announce a date for payment as soon as possible.

Cash balances decreased by approximately £151,000 during the quarter. Interest received totalled £21,000. Dividends paid totalled £114,000. Legal expenses totalled £47,000. Other liquidation expenses totalled £11,000.

Contacts

The best way to make contact is to write to the bank at PO Box 197, Third Floor, Sixty Circular Road, Douglas, Isle of Man, IM99 1SN, or email ksf@iom.pwc.com . If you need to telephone the bank, please use the number +44 1624 699222. All other numbers in previous use are now switched off or auto-forward to +44 1624 699222. Please be aware that all telephone calls are recorded for security purposes.

Mike Simpson
Liquidator