April 2nd posting by M. Simpson on bank site

  • Anonymous
  • unspecified
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Posted: Thu, 02/04/2009 - 15:37

2 April 09

Kaupthing Singer & Friedlander UK Limited (In Administration) (“KSFUK”)
A number of creditors have contacted me following reports in the UK press regarding compensation being provided to certain creditors of KSFUK. KSFIOM creditors have expressed their concerns regarding these particular creditors potentially being granted preference over other creditors of KSFUK, such as KSFIOM.

It is our understanding that the Financial Services Compensation Scheme ("FSCS") has paid compensation in full to both Mr Whelan (to allow for the purchase of the fitness clubs business from JJB plc, which will be rebranded as DW Sports Fitness) as well as deposits due to Stockcube plc. Stockcube plc has announced that its cash on deposit as well as interest due from KSFUK has been compensated by FSCS.

The joint Liquidators Provisionally wish to clarify their understanding that compensation to these parties has not been provided by KSFUK, but by the FSCS. KSFIOM cannot claim compensation from the FSCS in this regard.

Sale of JJB plc shares
The joint Liquidators Provisionally can confirm that KSFIOM has also disposed of its shareholding in JJB plc. The joint Liquidators Provisionally have no further news regarding the realisation of assets at this time.

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FSCS limit

  • chd
  • 13/10/08 30/09/09
  • a depositor
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  • Thu, 02/04/2009 - 16:52

.. Yes, but even if Whelan was compensated by FSCS, isn't the limit something like 100,000GBP and NOT 40 MillionGBP?

How come he gets the rules waived?

Comments by LP ref Whelan & Stockcube Plc

  • icdbrazil
  • 10/10/08 30/11/09
  • a depositor
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  • Thu, 02/04/2009 - 16:20

My understanding is that Stockcube met the small companies criteria in order to have funds released via FSCS (somebody reported callling them and their FD explained this). I checked the criteria (2 out of 3 needed - T/O, number of staff / Balance Sheet totals) to their published accounts and they fit.

Whelan is another issue - this one really smells bad. Even if FSCS paid claim, on what basis can they justify it vs stand taken ref KSF IOM deposits.

stitch up?

  • smithAD
  • 10/10/08 31/05/09
  • a depositor
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  • Thu, 02/04/2009 - 16:05

and where will the FSCS look to get their money from??

but wait now that Whelan is flush again I'd like to think the LP held out for a good price??...."no further news regarding the realisation of assets at this time." ....Nah