Brief Comments on SL's July - Sept 17 Data

  • Gordon 45
  • 22/10/08 n/a (free)
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Posted: Thu, 19/10/2017 - 19:49

Hi Folks,

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

1.A very disappointing Report for the last quarter (as Anrigaut has already stated), with no positives. A total of £13,000 received from loan interest and other income for July - Sept 2017. Zero £0k paid out in ‘catch up’ payments. No payment from the last loan, still leaving £3.938m to go. PwC expenses were £50k and Other Liquidation Expenses were £58k. As regards ‘contractual interest’, the Deemster issued his judgement on 16.6.2017, but there was a 6 weeks period to allow appeals. Still do not know if any appeals have been made – sorry. SL was considering the best way forward (Anrigaut), still waiting to hear his thoughts. 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. As said a very disappointing report in my view. No 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 past the 10th anniversary of the failure of the Bank and no change in ‘Unresolved’ and ‘Unclaimed’.

2.Remaining 1 part loan still due total £3.938m as at 30.9.2017. This loan is in Euros and is now well overdue. The SL it appears, still not prepared to discuss in any way the questions I raised regarding this remaining loan and the other questions raised..

3.FX Returns for Jan – Sept 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.

  1. ‘Unresolved’ no movement so still around £2.458m + the £1.500m ‘Unclaimed’ = £3.958.000m at end of Sept 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 again - no answer yet sadly. 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, if less cash comes in than that paid out (as has happened this quarter).

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. Think the SL can sell on (if possible) the remaining Loan Notes and Shares, if not , not sure if he has to wait until Kaupthing hf redeem them – sorry (have asked this question again).

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. Would have thought we would have to have seen some movement on the loan and the shares/notes to meet the end of year now.

10.Think we have an approx net £11.564m towards interest payments to Creditors as at 30.9.2017, 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 (as happened this quarter).

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 £8.064m towards this after allowing for the approx £3.5m for contractual/non-contractual interest, so a slight decrease (£95k) 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 – very poor now based on the time that has elapsed.

It appears therefore that all remaining items (think the SL can sell off the remaining PG assets if he can get a buyer, if not it may be that Kaupthing hf will control future redemption dates and if the time they take to redeem the shares/notes 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. It was a further question asked of our SL) now lie within the control of the SL and IOMC (if the Deemster’s decision was 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 hope for miracles between now and the end of the year to see the Liquidation ending then (my humble opinion only).

So I think we have stalled. Time now for our SL to get this last loan either repaid now 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.

Sorry, for the not so good news this quarter.

As always take care,

And God Bless,

Gordon 45

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thank you

  • dd
  • 24/11/08 31/05/09
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  • Sat, 21/10/2017 - 13:22

many thanks to Gordon and Anrigaut


Hear Hear

  • mikepapa
  • 10/10/08 n/a (free)
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  • Fri, 10/11/2017 - 14:57

My thanks to Gordon and Anrigaut for keeping us all updated!


Hope Springs Eternal

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
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  • Fri, 27/10/2017 - 07:00

Many thanks to Gordon and Anrigaut. Your updates are greatly appreciated.


Thanks to Gordon and

  • sambururob
  • 10/10/08 n/a (free)
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  • Fri, 20/10/2017 - 10:23

Thanks to Gordon and Anrigaut. Patience!!


Light at the end of the tunnel?

  • anrigaut
  • 19/10/08 30/10/09
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  • Fri, 20/10/2017 - 09:18

Thanks as ever Gordon for your detailed summary.

My take on where we stand - for what it's worth (or not!) - is that, the interest issue having been settled in principle by the Court (and I am assuming there has been no appeal - otherwise I think we would have heard by now), it is now only the outstanding loan which is holding things up and that, once that is settled, the rest will all fall into place, the interest will be paid and the liquidation brought to an end - at last!

Like Gordon - and no doubt most of us - my immediate reaction to the latest update was one of extreme disappointment to see no (visible) movement on this in the last quarter - not even a partial redemption (as has happened in previous quarters, though the amounts were never large). However, a rapid response from the Liquidator to whom I wrote to express my disappointment and seek possible reassurance, has done much to lift my gloom. So I think it only right that I share it with you in full. This was his reply to my email:

"There is much going on in respect of the remaining loan, however, as you correctly guessed, I am unable to share any detail. I do believe the remaining balance is fully recoverable and will be recovered soon, however, the path to recovery is not straightforward. Once the loan has been repaid, we can commence the process to pay out interest. I will explain the interest process on the website at that point - I don't want to do that yet as I am not yet able to state the final date for the proving of claims, as I cannot do this until the loan has been recovered."

It remains to be seen what 'soon' means. But hopefully, it's a matter of months rather than years!

Regards to all,
anrigaut


Anrigaut

  • Gordon 45
  • 22/10/08 n/a (free)
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  • Fri, 20/10/2017 - 22:31

Hi Anrigaut,

Just want to say thanks for that speedy and helpful update. Great that you have managed to get a quick reply from the Liquidator that bodes well as regards the end of this Liquidation.

Thanks again
Gordon 45


Light at the end of the tunnel.

  • jmf
  • 16/10/08 31/10/09
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  • Tue, 07/11/2017 - 11:37

Thank you Anrigaut for this positive news. Thank you too Gordon 45 for your continuing splendid work keeping us up to date.

jmf