Brief Comments on SL's Jan-March 17 Data

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
  • Offline
Posted: Sun, 30/04/2017 - 19:32

Hi Folks,

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

  1. Total of £316km received from loan repayments/interest and other income for Jan – March 2017. Another £42k paid out in ‘catch up’ payments. One part loan of £4.078m to go. Other Liquidation Expenses were £101k. SL has confirmed to me that he has received all the Kaupthing hf Shares and Convertible Notes from Iceland. As regards ‘contractual interest’, we know that the IOMC hearing was held on 23.3.2017, but the Deemster reserved judgement, meaning we have to await his decision. 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

  2. Remaining 1 part loan still due total £4.078m as at 31.3.2017. 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 - March 2017 is +£13.7m. 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’ around £2.458m + the £1.500m ‘Unclaimed’ = £3.958.000m at end of March 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 to ask. 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 thinks the end of the year is more likely now.

  10. Think we have an approx net £11.242m towards interest payments to Creditors as at 31.3.2017, 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 or agreed by the IOMC to pay out this interest will have varying degrees of costs – thus the Court application by the SL. But any interest paid will be limited by the extent to which cash is available’. I think the SL is hopeful that the correct method for calculating interest will be determined, but we await that judgment. I think we may currently have approx £7.742m towards this after allowing for the approx £3.5m for contractual/non-contractual interest. 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 did ask if he would pay out the ‘Contractual Interest’ & ‘Non Contractual Interest up to the 8.10.2008 once the IOMC judgment was clarified – but SL said he would leave commenting on Interest until we have received the Judgment (hopefully very soon).

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.

So getting there now. Need the 1 part loan, any Litigation, sale of remaining PG assets and the IOM Court’s decision on how to go about paying out the remaining cash in interest payments

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 the IOM Court’s decision. Hopefully the IOMC data, when issued, regarding the interest calculations, will take us 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 June 2017 Quarterly update followed by the 9.7.2017 ‘6 Monthly Progress Report’.

As always take care,

And God Bless,

Gordon 45

Your rating: None Average: 4.8 (8 votes)

Comment viewing options
Select your preferred way to display the comments and click "Save settings" to activate your changes.

Outstanding Loan

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
  • Offline
  • Mon, 01/05/2017 - 06:49

Good work Gordon.

I presume that the SL is still holding out hope that the outstanding loan (4.078 million) will eventually be repaid (either in full or in part) - a small amount of the principal appears to have been paid off in the quarter to 31 March - otherwise why hasn't the SL taken possession of and sold off the security against which the loan is secured ? (hopefully there is such a security). However, if there is a reasonable chance of the borrower repaying the loan why haven't they been able to refinance it with others? (as has been done for many of the other loans).

I'd be interested to hear from the SL on this issue.

Thank you Gordon. It seems to

  • sambururob
  • 10/10/08 n/a (free)
  • a depositor
  • Offline
  • Sun, 30/04/2017 - 21:25

Thank you Gordon. It seems to us that what we really need now is the Deemster to get out of bed and to get out on the right side.
It has been nine years so he is certainly not rushing!
Have a good day,
Rob and Wendy