UPDATED 28 Dec: DST Update re claims under Parental Guarantee

**Update by anrigaut, 28 Dec 09: **
Posted on the DCS website https://www.dcs.im/dcs/dcs.nsf/220509 on 24 Dec:

" PARENTAL GUARANTEE - 24 December 2009 :

Claimants may be aware of the possibility that underlying depositors’ of Kaupthing Singer and Friedlander (Isle of Man) Limited (in liquidation) may be able to claim against the parental guarantee given by Kaupthing hf.

The Scheme Manager is not is a position to take Icelandic legal advice to assess the likelihood of such a claim being successful before the filing date. However, it will lodge a claim with the winding-up committee of Kaupthing hf as a protective measure.

DCS claimants will be aware that they have assigned all their rights to the Scheme Manager and should not seek to register a separate claim in their own name.

At this time the Scheme Manager will not be in a position to answer any individual queries relating to the parental guarantee."

It thus appears that DCS have reacted similarly to DST to the latest announcements of PWC by deciding -as a precaution - to submit a claim on behalf of all DCS claimants (in whose shoes they stand). There is thus no need for further action on the part of those claiming through DCS. For other depositors however, the action of DCS would seem to reinforce the informal advice of DST to submit individual claims.

The above is merely my personal appraisal of the situation.

Posted on behalf of DST, 24 Dec 09:

In a phone call today (24th Dec 2009), Mr Spratt, PWC, Joint Liquidator for KSFIOM, has confirmed to us that PWC will be hand delivering a claim on behalf of the company (KSFIOM) under the Parental Guarantee to the Winding Up Committee in Iceland before midnight on 30th December 2009.

In addition, as a secondary and precautionary measure and to alleviate the worry for many depositors, DST is in the process of obtaining Icelandic representation to act as Power of Attorney to act for any depositors still wishing to make individual claims but unable to deliver them on time. We hope to have this in place on 28th December 2009, bearing in mind the Xmas holiday. In the meantime, if you wish to avail yourself of this possibility, please complete your claim form/s in preparation. We shall issue further information on how to proceed on Monday 28th December 2009.

Our information is that, due to the legalities of the wording of the Parental Guarantee, it is almost certain that the company claim in respect of KSFIOM to be submitted by PWC will be accepted and individual claims rejected. However we are not able to publish a firm legal opinion on this for the same reasons presumably that PWC have been unable to.

We are sorry that depositors have been faced with the potential worry this issue has created at this time of year, and hope that this update ensures you are not worrying unnecessarily over Christmas.

Best wishes to you all and a very merry Christmas.
Strategy Team - KSFIOM DAG