Brief Comments on SL's Oct-Dec 16 Data
My Latest Thoughts after taking into account the SL’s Oct – Dec 2016 Figures - you may not agree with me
Total of £167km received from loan repayments/interest and other income for Oct – Dec 2016. Another £11k paid out in ‘catch up’ payments. One part loan to go. My data is based on GBP, apologies to my DAG Colleagues who invested in other currencies. Other Liquidation Expenses were £14k. As regards Kaupthing hf re PG, do not know if we have received the Kaupthing Shares & Convertible Notes and they have been sold on, or we have not yet received them – cannot tell, but seems likely we have not. We are moving very slowly forwards as regards ‘contractual interest’, further court hearing due on 23.3.2017. Outcome regarding interest calculations was not finalised. Also nothing new on Litigation outwith loans.
Remaining 1 part loan still due total £4.318m as at 31.12.2016. This loan is in Euros. SL expects a full repayment on this loan by Feb 2017.
FX Returns for Jan – Dec 2016 is +£13.6m, Jan15 was +£13.1m, Jan 2014 was +£14.2m, Jan 2013 was +£13.2m and Jan 2012 was +£15.2m.
‘Unresolved’ around £2.437m + the £1.500m ‘Unclaimed’ = £3.937m at end of Dec 2016.
Liquidation costs and other Fees paid out once they are agreed. This will affect net cash available to Creditors as payments are made.
‘Write offs’ currently £16.4m.
The ‘set off’ situation no change, currently £15.2m.
The PG was finalised and agreed at £3.2m. The Composition Kaupthing agreed with Creditors was 30% of the value of their agreed claim. Cash received (£297k), – Think we are still waiting on word from SL on
• Shares in Kaupthing 0.5%
• Kaupthing convertible notes 21.2%
I assume we have not received the above yet. I presume, as the SL has said previously, the shares and notes will be sold in the short term once he has received them – if he can and at what value - in order to realise value for creditors.
The SL has stated previously the Liquidation might end by June/July 2017, do not know if that is possible now - dependent upon the loan Book – 1 part loan still due, ‘Unresolved’, Litigation & PG situation. Need also the balance due under the PG agreement and the Court’s direction on how to go about paying out the remaining cash.
Think we have an approx net £11.091m towards interest payments to Creditors as at 31.12.2016, 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’. Currently may have approx £7.591m towards this. Also as noted in the JLs January & July 2015 Progress Reports and the SL’s January & July 2016 Progress Reports - that 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.
Re – Life Insurance Policies (Bondholders). Still appears no change here, 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.
So getting there very slowly now, but the SL still has to finalise the loan book (this last part loan due repayment next Month - Feb 2017), reach agreement with the remaining ‘Unresolved’ cases (or do what he has to do to finalise them), look at and finalise any Litigation outwith the loan book and receive the Shares & Convertible Notes, due under the Composition Agreement with the WuC of Kaupthing hf, in order to meet his hoped for July 2017 closure of the KSFIOM Liquidation. Assuming the shares and convertible notes (through the PG) are received by the SL, It appears everything else now lies within the control of the SL and the IOM Court – I think. Hopefully the data, when issued, regarding the interest calculations will take us one step closer to the finalising of this Liquidation. Sorry there is not more info on where we are. I keep trying to get info but to no avail. Hopefully the ‘6 monthly progress report due out shortly will give more information.
As always take care,
And God Bless,