Need to look at this - Simpson Affidavit

  • Anonymous
  • unspecified
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Posted: Wed, 21/01/2009 - 18:18

See latest SImposon Affidavit on DAG site:

http://www.ksfiomdepositors.org/public-page/affidavit-michael-simpson-21...

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JJB - Are there more of these?

  • Alastair
  • 10/10/08 30/09/09
  • a depositor
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  • Wed, 21/01/2009 - 19:48

My first take on this affidavit is the comment that there may be more but he can't comment as this is commercially sensitive. If there weren't any more I think he would have said this is a one off.

No details as to the size of the loan that these share are replacing as collateral.


I am not an accountant BUT the circle could be squared IF....

  • Lucky Jim
  • 13/10/08 31/05/09
  • not a depositor
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  • Wed, 21/01/2009 - 21:19

I am not an accountant but as a layman looking at the KSFIOM Accounts attached to the Affidavit of M.Simpson (Liquidator Provisionally), if the balance of £402million of frozen KSFIOM assets in Kaupthing UK were restored to the Bank there would be a shortfall of £244million. This could be bridged by funds notionally reserved for the Compensation Scheme (or by the IOM Government) enabling depositors to be repaid in full.

Thus the circle could be readily squared if HM Treasury released the estimated £402million assets held in Kaupthing UK.

Should DAG's tactics now be focussed on what DAG can/should do to help M. Simpson recover that £402million ?


quadrature of the circle

  • Captain Mainwaring
  • 11/10/08 31/05/09
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  • Thu, 22/01/2009 - 02:54

I thought that the bottom line was just that - the bottom line, and here we see that current liabilities are £76M - assuming recovery of the £402M. You are also missing a key point - so the Treasury releases the assets, but will the get 100/100 on the liquidation, we know that there is no preference to these assets.

As for assisting Simpson, there is absolutely nothing he can do - the only hope is that E&Y pay out and interim dividend which could then be used by KSFIoM.

Say E&Y paid out 50/100 (who knows what it will be, but the suggestion is that it should be quite reasonable) - then you look at having to find £201M+£76M to have KSFIoM paper solvent.

I'm interested in the listing of the parental guarantee as a potential asset.