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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  • 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.

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.