Brief Thoughts on the SL's April-June 2015 Data

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
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Posted: Thu, 16/07/2015 - 21:40

Hi Folks,

My Latest Thoughts after taking into account the JLs April - June 2015 Figures - you may not agree with me

  1. Returns for Jan - June 2015 were £2.5m. My data is based on GBP, apologies to my DAG Colleagues who invested in other currencies. Note IOM High Court approved the retirement of Peter Spratt on 9.6.2015. Michael Simpson will continue in his role as the Sole Liquidator (SL). But, a very disappointing set of figures with no real movement in the key areas – loan book, ‘Unresolved’ and PG.

  2. Sole liquidator saying one full loan of £2.5m repaid in early April 2015. Remaining loans total £22.667m at 30.6.2015.

  3. FX Returns for Jan – June 2015 show a loss of £1.1m (now +£12.0m). Starting figure for Jan15 is +£13.1m, Jan 2014 was +£14.2m, Jan 2013 was +£13.2m and Jan 2012 was +£15.2m.

  4. ‘Unresolved’ around £2.529m + the £1.500m ‘Unclaimed’ = £4.029m at end of June 2015. SL surely has to get the ‘Unresolved’ resolved now.

  5. Liquidation costs – SL said they couldn’t estimate these costs from 9.1.2015 Progress Report onwards. SL may not be able to estimate these future costs, but Liquidation and other fees so far this year comes to £0.333m

  6. The ‘write off’ situation, no change at £3.4m. The SL has to deal with the remaining 9 Facilities Now – and give us a full update on them all asap – preferably no later than in the ‘6 monthly Progress Report dated 9.7.2015.

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

  8. Re the PG – Slight change? - The return of our Capital means any return from the PG will be towards paying us some interest back. Hopefully, our SL manages to sell off the PG to a Third Party. It may be slightly easier now based on the latest info from the Icelandic Government issued on 8.6.2015 (my thoughts only). In my humble opinion there appears to have been some form of movement by the Icelandic Government – not good – but it may lead to a move forward. The references to this information came thanks to Anrigaut – I must state my interpretation on the jargon and complex nature of the wording is mine only and should not be thought of as coming from Anrigaut in any way.

Kaupthing hf and Sigrún Davíðsdóttir's Blog both make mention of information provided by the Icelandic Government. Kaupthing hf mention an introduction of a ‘stability tax & exemption framework as part of the Icelandic Government’s liberalisation of capital controls initiated in 2008. Sigrún Davíðsdóttir's Blog of 8.6.2015 mentions a ‘stability contribution’ of 39% of assets in order to secure a negotiated Composition. If this is agreed then the figure might be lower than 39%. It seems either all concerned agree to this ‘stability contribution’, if not, the ‘estates’ go into bankruptcy and pay 39% as a tax, and this situation could lead to ‘legal wrangling in multiple jurisdictions for a decade’ (Sigrún Davíðsdóttir's Blog).

I apologise profusely if I am only making matters worse (for you my colleagues), with my comments, but the above is what I glean from the information available. I see no end to this situation at present, unless this strategy gets approval from all. If it does, then perhaps our SL may have a chance of selling on our PG at a substantial or vast discount.

  1. As at end of June 2015 data, Loans still due totalled £22.667m. Based on currency, 82.742% of loans, come from Euros and USD plus some Swiss Francs. Within that % Euros account for 56.016% and circa 46.350% of all loans due.

  2. No more info on the end date of the Liquidation, but keep saying the JLs must surely push forward now to finalise the loan book quickly (one way or another), resolve the ‘Unresolved’, then try and deal with the PG or sell it off if possible. And look at and finalise any Litigation, outwith that of the loan book.

  3. Think we have an approx net £4.129m towards interest payments to Creditors as at 30.6.2015, after allowing for Liquidation fees etc.

  4. The £4.129m – is according to my figures ‘free’ cash available to pay creditors after allowing for the remaining ‘Unresolved and ‘Unclaimed’. Although we do not know what is required for the remainder of Liquidation Expenses, a total of £0.330m has been paid this year so far. If no more cash comes in we will continue to incur Liquidation Expenses plus other fees thus lowering any amount available for distribution.

As said in one of my previous updates 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. In respect of further interest payments, JLs have applied to the Court to seek directions on the calculation methodology – as per January 2015 Progress report). Appears some complications have arisen over the IOMG Early Payments Schemes and that is holding back a decision – this information is thanks to Knife Edge.

‘All Creditors would’ (then) ‘receive interest at 4% pa’. ‘Paying this interest to creditors could amount to up to £36.2m per annum, but would of course be limited by the extent to which cash was available’. Quoted data taken from JLs info in January 2013 update.

I also noted in the JLs January 2015 Progress report that it was intended that one further dividend would be paid to creditors in respect of each class of interest. Timing and amount would depend on realisation of remaining assets. To me that meant Loan Book, PG and Litigation. I thought based on what I read that some Creditors might get two payments.

I have as Anrigaut has done, contacted the SL for clarification on whether he expected to pay out a dividend to those due ‘contractual interest’, no reply – the data from Knife Edge gives us an update on this. Also tried to establish whether some creditors might get two payments or not and also asked if the £2.5m came from the sale or liquidation of the London Property – a figure of £2.8m was quoted in JLs July 2014 Progress Report – again no reply so far.

As always take care,

And God Bless,

Gordon 45

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Thank you Gordon. This

  • sambururob
  • 10/10/08 n/a (free)
  • a depositor
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  • Sat, 18/07/2015 - 08:33

Thank you Gordon. This obviously represents a lot of research and work on your part and we truly appreciate it.
Although it would be great to have a final settlement and call it a day, we have developed a mind set whereby anything received from now on is extra so it is like waiting for news of a lottery win. That stops us from getting really mad with the whole situation.
'Don't let the buggers get you down' as was famously said.
Have a good day,
Rob and Wendy

'Lottery Win?"

  • VikingRaider
  • 10/10/08 31/05/09
  • unspecified
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  • Sat, 08/08/2015 - 09:01

After all this time waiting for our few hundred quid outstanding, a bonus 'lottery' payout would make my old dad cock a hoop.