Brief Thoughts on SL's July-Sept Data

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
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Posted: Fri, 14/10/2016 - 21:00

Hi Folks,

My Latest Thoughts after taking into account the SL’s July – Sept 2016 Figures - you may not agree with me

  1. Total of £599km received from loan repayments/interest and other income for July – Sept 2016. Another £2k paid out in ‘catch up’ payments, Liquidators fees/expenses totalling around £585k this year. One part loan to go. My data is based on GBP, apologies to my DAG Colleagues who invested in other currencies. Virtually no movement in ‘Unresolved’ & ‘Unclaimed’. As regards Kaupthing hf re PG, need info on the Kaupthing Shares & Convertible Notes. We are moving forward as regards ‘contractual interest’, with the SL expecting to issue “a further update in the next few days on the matter of interest calculations”. But nothing new on Litigation outwith loans.

Note – Liquidation fees/Expenses. SL has chosen to ‘muddy’ the waters here by showing Liquidators fees of £312k covering 29.11.15 – 3.6.2016. In the past he has shown figures where applicable in each quarter. So, the £585k is now an approximation on my part (sorry about that).

  1. Remaining 1 part loan still due total £4.380m as at 30.9.2016. This loan is in Euros. SL expects a full repayment on this loan by Feb 2017.

  2. FX Returns for Jan – Sept 2016 is +£13.7m, Jan15 was +£13.1m, Jan 2014 was +£14.2m, Jan 2013 was +£13.2m and Jan 2012 was +£15.2m.

  3. ‘Unresolved’ around £2.448m + the £1.500m ‘Unclaimed’ = £3.998m at end of Sept 2016.

  4. Liquidation costs – Liquidation and other fees so far this year comes to around £585k.

  5. ‘Write offs’ currently £20.2m.

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

  7. 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), – still waiting on word from SL on

· Shares in Kaupthing 0.5%
· Kaupthing convertible notes 21.2%

We do not know if we have received the remainder 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.

  1. The SL has stated the Liquidation might end by June/July 2017 - dependent upon the loan Book, ‘Unresolved’, Litigation & PG situation. The PG agreement, while miniscule in value – is good news with regard to reaching an end to this Liquidation, as is one part loan to go.

  2. Think we have an approx net £10.8878m towards interest payments to Creditors as at 30.9.2016, 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. In respect of further interest payments. The SL has said there will be an update on interest calculations in the next few days.

‘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 £7.3878m 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, but the SL still has to finalise the loan book (1 part loan to go, repaid hopefully 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.

As always take care,

And God Bless,

Gordon 45

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What to expect now?

  • Ohdear
  • 13/10/08 31/05/09
  • unspecified
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  • Mon, 07/11/2016 - 21:48

Thanks Gordon and others for all the supportive information here. I am still a bit confused, in real term do we / should we expect any more return as part of lost interest? Or this is it?

Thanks in advance for any clarification.


Thank you

  • sunny1
  • 16/10/08 30/05/14
  • a depositor
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  • Thu, 20/10/2016 - 13:33

Thank you Gordon. As usual, your report and your comments are interesting and useful.
And it's great that the end maybe in sight.
Sunny1


Liquidator's Fees

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
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  • Sun, 16/10/2016 - 02:02

Hi Gordon,

Probably a small point but you mention "...Liquidators fees of £312k covering 29.11.15 – 3.6.2016 " but the SL's report mentions 29 November 2014.

Anyway, keep up the good work your comments are invaluable to us,

D RAM


To D RAM

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
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  • Mon, 17/10/2016 - 15:56

Thanks for that, skimming the data and missed 2014.

Gordon 45


To D RAM

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
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  • Mon, 17/10/2016 - 15:55

duplicate for some reason


Thank You

  • Blades
  • 19/10/08 n/a (free)
  • a depositor
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  • Sat, 15/10/2016 - 07:48

Thanks very much Gordon. Your analysis continues to be very much appreciated.


THANKS

  • mikepapa
  • 10/10/08 n/a (free)
  • a depositor
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  • Mon, 31/10/2016 - 14:34

Dear Gordon

My thanks to you, as always, for keeping such a carefull eye on proceedings!!

Kind regards,

Mikepapa