Brief Comments on SL's April - June 17 Data

  • Gordon 45
  • 22/10/08 n/a (free)
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Posted: Fri, 11/08/2017 - 19:37

Hi Folks,

My Latest Thoughts after taking into account the SL’s April – June 2017 Figures - you may not agree with me

  1. Total of £754,000k received from loan repayments/interest and other income for April – June 2017. Zero £0k paid out in ‘catch up’ payments. One part loan of £3.9247m to go. PwC expenses were £223k and Other Liquidation Expenses were £115k. As regards ‘contractual interest’, the Deemster issued his judgement on 16.6.2017, but there was a 6 weeks period to allow appeals. Do not know if any appeals have been made – sorry. SL also considering the best way forward (Anrigaut). Regarding Litigation outwith loans – SL has said he cannot discuss details, however, as recoveries have increased, the basis for any Litigation has reduced. My data is based on GBP, apologies to my DAG Colleagues who invested in other currencies. Report very late in being issued, MS has said due to one of the Banks being late in supplying figures, and it was passed on last week to be updated to the website, but obviously a delay there also. A very disappointing report in my view. Not a lot further forward re last loan, no update on the sale or otherwise of the balance of shares/notes from Iceland, still fairly high costs it seems to me as things now drag on towards the 10th anniversary of the failure of the Bank and no change in ‘Unresolved’ and ‘Unclaimed’.

  2. Remaining 1 part loan still due total £3.9247m as at 30.6.2017. This loan is in Euros and is now overdue. The SL was not prepared to discuss in any way the questions I raised regarding this remaining loan.

  3. FX Returns for Jan – June 2017 is +£13.8m. Jan 2017 was +£13.6m, Jan 2016 was +£13.6m, Jan15 was +£13.1m, Jan 2014 was +£14.2m, Jan 2013 was +£13.2m and Jan 2012 was +£15.2m.

  4. ‘Unresolved’ no movement so still around £2.458m + the £1.500m ‘Unclaimed’ = £3.958.000m at end of June 2017. SL has said to me if he believes a claim is not valid he will reject it and the claimant then has a period of time during which they can object – I do not know the period of time allowed – a further question asked – no answer yet. As regards ‘Unclaimed’, if creditors do not make a claim by the final date for ‘proving’ (which has not yet been set) they miss out.

  5. Liquidation costs and other Fees are paid out once they are agreed. This will affect net cash available to Creditors as these payments are made.

  6. ‘Write offs’ currently £16.4m.

  7. The ‘set off’ situation no change, currently £15.2m.

  8. As said above all Kaupthing hf Shares and Convertible Notes due as part of the PG Claim have been received by the SL. Some cash had already been received in respect of a partial repayment of the Loan Notes. Not sure whether the SL can sell on (if possible) the remaining Loan Notes and Shares or whether he has to wait until Kaupthing hf redeem them – sorry.

  9. The SL stated previously the Liquidation might end by June/July 2017; he revised this to around the end of 2017 and realistically thought the end of the year was more likely. Time now getting short to meet that end date, hope the ‘6 monthly report’ has more info for us.

  10. Think we have an approx net £11.659m towards interest payments to Creditors as at 30.6.2017, after the Liquidation fees (so far), and allowing for the remaining ‘Unresolved and ‘Unclaimed’ claims. If no more cash comes in we will continue to incur Liquidation Expenses plus other fees thus lowering any amount available for distribution.

To re-iterate once more - we need 0.4% or around £3.5m to pay the initial contractual interest. Creditors entitled to contractual interest in excess of 5% would receive the amount due in excess of 5% up to the 8.10.2008. Creditors not entitled to contractual interest would receive 4% on amounts owed up to 8.10.2008. This amount would be small as the relevant creditors are typically trade creditors; the total value of such claims is low. Once the above two steps have been completed all creditors will have received their interest entitlements up to 8.10.2008.

‘All Creditors would’ (then) ‘receive interest at 4% pa’. The method chosen by the IOMC to pay out this interest will have costs. But any interest paid will be limited by the extent to which cash is available’. SL currently considering the best way forward. There was also a 6 weeks period for appeals to be lodged with respect to the Deemster’s judgement. This has passed, but no info whether anyone has appealed. I think we may currently have approx £8.159m towards this after allowing for the approx £3.5m for contractual/non-contractual interest, so a slight increase from the last quarter. Also as the JLs then SL keep reiterating in the ‘6 monthly progress reports’, it is intended that one further dividend will be paid to creditors in respect of each class of interest; timing and amount would depend on realisation of remaining assets. I have asked the SL again if he would pay out the ‘Contractual Interest’ & ‘Non Contractual Interest up to the 8.10.2008 now that the IOMC judgment has been issued (remembering the 6 weeks in which appeals could be raised) – SL did say he would leave commenting on Interest until we have received the Judgment. I have asked again – no reply so far.

Re – Life Insurance Policies (Bondholders). Although the SL has done his best to help regarding this situation, it appears some Bondholders still await clarification from their Life Companies on whether or not to allow Bondholders to deal directly with the SL on any future payments – pretty poor.

It appears therefore that all remaining items (not sure if selling off the remaining PG assets is within the SL’s direct control, or whether Kaupthing hf still control redemption dates – if Kaupthing hf control future redemption dates, and the time they take to redeem them is beyond the redemption of our last loan then perhaps our SL should decide to forgo the further hoped for returns of between £0-£500k for the Shares and Convertible Notes if it allows him to end the Liquidation. So it is a further question to ask our SL) now lies within the control of the SL and IOMC (if the Deemster’s decision appealed). But it appears with the Deemster’s decision that we are a major step closer to the finalising of this Liquidation. I will keep trying to ascertain more info on where we are at all times. We now await the 9.7.2017 ‘6 Monthly Progress Report then the September 2017 Quarterly update.

So getting there very, very, slowly. Time now for our SL to get this last loan either repaid quickly or foreclose on it. Decide on balance of PG assets – can anything be redeemed from them or time to write them off, is Litigation a ‘goer’ or not and resolve the ‘Unresolved’, so the Liquidation can come to an end,

As always take care,

And God Bless,

Gordon 45

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Thanks!!

  • William Wightman
  • 19/10/08 31/05/09
  • a depositor
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  • Thu, 07/09/2017 - 09:35

Gordon...
Many thanks, as ever, for your summary of the current situation.
It looks like the end is near!!

Bill


Thanks

  • everhopeful
  • 11/10/08 n/a (free)
  • a depositor
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  • Tue, 22/08/2017 - 05:56

Thank you Gordon for a doing such a great job and finding your way around the documents and numbers. Very much appreciated as always.
James


Thank you

  • sunny1
  • 16/10/08 30/05/14
  • a depositor
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  • Thu, 17/08/2017 - 10:09

Thank you once more Gordon. Sunny1


June '17 report

  • Cawdor
  • 13/10/08 31/05/09
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  • Mon, 14/08/2017 - 02:15

Thanks, Gordon. As ever your comments much appreciated.


PG claim

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
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  • Sat, 12/08/2017 - 08:38

Re point 6 - Kaupthing hf shares & convertible notes:

Clearly, Kaupthing hf control the redemption dates for the Notes. But I am sure the liquidator can sell these, as well as the shares, provided of course he can find a suitable buyer. For now he can afford to hang on to them until and unless a tempting offer comes long. But he will surely sell them on for whatever he can get when he is ready to close the liquidation.


Thanks Gordon. Edging

  • sambururob
  • 10/10/08 n/a (free)
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  • Sat, 12/08/2017 - 06:47

Thanks Gordon. Edging closer.
Rob and Wendy


Thanks Gordon

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
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  • Sat, 12/08/2017 - 04:09

Hi Gordon,

Thanks for your clear and concise summation of the current situation. Hopefully the next 6-monthly report from the SL will clarify when he'll be in a position to wrap up the liquidation and we can receive our final pay out. His fees and "other expenses" in the last quarter appear way out of proportion to the monies recovered but I suppose there must be more to it than is immediately obvious.


Fees/expenses

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
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  • Sat, 12/08/2017 - 08:20

Hi D RAM,

It is indeed frustrating to see these ongoing quite large outgoings. However, what we don't know is to what period they relate. This may go back some time, well before (and no doubt excluding) the last quarter. In addition, all expenses gave to be approved by the CoI before payment, which may incur further delay. I imagine the 'other expenses' include legal fees incurred eg in pursuing the outstanding large loan and the Court case re interest. We should learn more from the next 6-monthly report due soon.