Brief Comments on SL's Oct-Dec 17 Data

  • Gordon 45
  • 22/10/08 n/a (free)
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Posted: Fri, 26/01/2018 - 15:55

Hi Folks,

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

1.A fantastic update from the SL as the last loan has been repaid in full - cannot believe it. Cash balances increased by £4,237,000. Loan interest and repayments totalled £4,063,000, Other income totalled £283,000, Legal Expenses totalled £78,000 and Other Liquidation expenses totalled £31,000.

As said before, as regards ‘contractual interest’, the Deemster issued his judgement on 16.6.2017, but there was a 6 weeks period to allow appeals. Assume now there has been none brought forward. Hopefully we will hear from the SL shortly on how he will move forward unless we need to await the decision regarding any legal claims the SL might bring forward. He has said in the past that 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. I wonder if the £283,000 from Other Income came from the sale of the balance of shares/notes from Iceland. And of course we presumably still have the situation on ‘Unresolved’ and ‘Unclaimed’. Hopefully minor details in the finalisation of the Liquidation.

2.Last Loan fully repaid - well done to the SL.

3.FX Returns for Jan – Dec 2017 is +£14.0m. 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 update so assume still around £2.458m + the £1.500m ‘Unclaimed’ = £3.958.000m at end of Dec 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. The figures I show below could change slightly based on ongoing costs to finalise the Liquidation. The only other cash that might come in now would, I think, come from any successful Litigation, the ‘Unclaimed’ and perhaps the ‘ Unresolved’.

6.‘Write offs’ currently £16.4m.

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

8.Hopefully the ‘6 monthly report’ will give some update on the hoped for end date of the Liquidation.

9.Think we have an approx net £15.8015m towards interest payments to Creditors as at 31.12.2017, 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 has been considering the best way forward. Hopefully again the ‘6 monthly report, due out shortly, will give more information on this. I think we may currently have approx £12.3015m towards this after allowing for the approx £3.5m for contractual/non-contractual interest. Also, as the JLs then SL kept 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. Hopefully again the SL will give us more information on this within the ‘6 monthly report due out shortly.

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. Again hopefully this will no longer be a problem very shortly.

So I think we are almost there eventually. Hopefully our SL can clarify very quickly whether Litigation is a ‘goer’ or not and resolve the ‘Unresolved’, so the Liquidation can come to an end.

What brilliant news this Quarter, let’s hope for a quick resolution to the few remaining minor problems. Could this be a brilliant start to our New Year for all of us.

As always take care,

And God Bless,

Gordon 45

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  • mikepapa
  • 10/10/08 n/a (free)
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  • Tue, 20/03/2018 - 14:31

Dear Gordon,

As always - many thanks for your insightful updated report!

Kind regards,



  • cottesmore
  • 21/10/08 16/07/12
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  • Sat, 24/02/2018 - 09:20

Well it’s been a over a month since the last news update from MS. How long does it take to do a six month update and give closure and some interest. I guess it’s the liquidators last few visits at our cash trough to relieve us of our money!! I know some of you will think it’s harsh,but,I’ve always maintained this bank should have never gone into liquidation. It was a fully going concern and should have been sold as exactly that. How many companies do you know that creditors recover 100% and get interest? Enough said. Best wishes to all of you.


  • dodot
  • 10/10/08 01/06/13
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  • Sun, 11/03/2018 - 11:14

I declare a potential conflict of,interest as a retired PwC Partner, but I think your comment about MS is harsh. It is not his fault the bank was put in to Administration, that responsibility lies with others, who rightly deserve our criticism. In my view, MS under the supervision of the COI, has done a fantastic job.. I well remember ten years ago staring at my computer day after day for some optimistic news, depressed that the crooks in KSF IOM had managed to “lose” my instruction to transfer funds. And somewhat frustrated at my own idiocy in being deceived by the euphemistic “North European” Bank. I would have been delighted if someone had told me ten years later I would have 100% of my money back. I have no problem waiting a few more weeks or months for a little bit on interest. Best wishes.


  • cottesmore
  • 21/10/08 16/07/12
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  • Mon, 12/03/2018 - 16:54

Thanks for your opinion, but I won’t retract a word of my own opinion. As I said, this should have been sold as a whole loan book. It was a well funded,saleable bank,with loans that were well asset based. No toxic date!! Instead,peace meal deals that took ridiculous amount of years to sell but incur huge fees!!
I wasn’t a Liquidator or administrator. I didn’t work for any of the ,“institutional “ corporate finance firms. But,I was MD of my own company that secured a very favourable sale to a,PLC so have a very good understanding of company sales,etc.
This will be MS biggest case and biggest fee earner ever on that island. Please don’t make him out to be some genius. Any liquidator could have handled this,let alone,two senior partners!! Ten years feeding in our trough is enough now thanks.
No offence to anyone intended.
Kind regards as always


  • Brabander
  • 15/10/08 31/05/09
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  • Mon, 12/03/2018 - 20:59

Whilst I can appreciate your observations, I do not entirely agree.
I gave the bank several instructions to transfer various amounts of funds some weeks prior to the date the bank was put into receivership.
Only one of these instructions was carried out. I phoned the bank on numerous occasions and spoke with the CEO who promised me that another transfer was in the pipeline. In the event no further transfers were made.
The fact is that KSF IOM had run out of funds and was unable to execute the redemption demands of depositors!
In my book that makes a bank insolvent.
It remains to be seen whether at that time of turbulence in the financial markets and the resultant massive impact on asset values it would have been possible to sell the bank for its book value.

I cannot judge the whether the fees charged by the receivers/liquidators have been reasonable or whether the entire process could have been completed more speedily.

I do however agree that it should NOT take a further 6 months to finalise this process and pay a final dividend as there are apparently no further legal hurdles to do so.


  • cottesmore
  • 21/10/08 16/07/12
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  • Mon, 12/03/2018 - 21:46

Thanks Michael,I’m not trying to wind up any of you fellow sufferers. We’ve been through enough!! Some of us never even made it!! The parent bank could easily have covered those deposit requests,but weren’t allowed. Anyway, we agree totally that there’s no excuse for it to drag on. Give us our final dividend...........we all deserve it. God bless those who didn’t survive to see it!!

Report now out

  • anrigaut
  • 19/10/08 30/10/09
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  • Mon, 26/02/2018 - 12:05

Six monthly report to 9 Jan 2018 now online:

At last we can read that the "process to finalise the liquidation can now commence".

As expected, confirms (3.2 of Introduction) that MS now has to go back to the Court for (hopefully final!) directions on the process.

And (3.3) suggests a final dividend within the next 6 months.

Fingers crossed!!

Thanks to Annrigaut for the

  • sambururob
  • 10/10/08 n/a (free)
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  • Sat, 27/01/2018 - 11:08

Thanks to Annrigaut for the shout out and to Gordon for the preliminary analysis. It seems the end is near - hopefully.
Rewarding 2018 to all.
Rob and Wendy

Great News

  • expatvictim
  • 10/10/08 01/11/10
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  • Sat, 27/01/2018 - 04:22

Thanks as ever for the summary and anlysis Gordon and thanks also to Anrigaut for her shout.

January Update

  • Blades
  • 19/10/08 n/a (free)
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  • Mon, 29/01/2018 - 17:19

Thanks once again Gordon for your analysis, very encouraging.