Questions for Mike Simpson LP - for April 6th 2009

  • frog
  • 10/10/08 13/09/09
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Posted: Fri, 13/03/2009 - 18:39

I can't find the original thread I set up for this, so I ask everyone who has a question for the Liquidator Provisional to post them here for collation prior to putting them forward to Mike Simpson on the 6th April

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Simpson Call now

  • amar
  • 13/10/08 31/05/09
  • unspecified
  • Offline
  • Mon, 06/04/2009 - 15:49

I am listeninig to this call going on and to be frank it is a complete waste of time. Apart from Simpson telling us how much cash he has he gives no answer to any real questions....because he cant.

If you also read the SOA he has recommended it. As part of that during the SOA process however long this progresses he has no legal rights to pursue third parties without the approval of the Treasury as effectively it is still a LP.


QUESTIONS ARISING FROM AFFIDAVIT OF GOUGH 3/4/09AND PROPOSED SOA

  • Wombat761
  • 30/01/09 20/03/15
  • a depositor
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  • Mon, 06/04/2009 - 00:54

Q1 In the recital of the history of KSFIOM there is no reference to the buyout of Derbyshire Offshore in Nov 2007, or the transfer of its guarantee from Derbyshire PLC to KSFIOM, and the approval of that by the IOM FSA.

Q2 Clause 7 Conditions Precedent to Date of Commencement of Scheme : - 7.2 "the date the courts of England and Wales recognise the moratorium created as a result of the appointment of the Provisional Liquidator or give such other relief in respect of the Scheme or the provisional liquidation of the Company as is satisfactory to the Office" : What is MS estimate of the time needed to procure English Court recognition of the "moratorium" ? It is noted that in his 2nd Affidavit (of 28/1/2009) MS opines at Para 13 (ii) that this can be a "time consuming process".
If so, why has it not already been commenced in the interests of obtaining rapid and optimum creditor relief?

Q3 Clause 17 - Distribution Dates - There is no specified timing for these. Is it the case that once the scheme commences (ie after approval of the scheme/moratorium by the UK Courts [Clause 7.2] ) the payment dates are under the control of the Scheme Supervisor in consultation with Treasury and the creditors committee?

Does MS have any estimate of how quickly this is likely to move? Will a schedule be published ?

Q4 Interest Payments (before and after 9/10/2008 - Clauses 27.1 ff : Do these mean that the Treasury is offering to pay interest on depositor's funds at 5% from 9/10/2008 to 9the Court Hearing Date , ie 9/4/2009?

Also thanks a heap, froggy!


LP recommendation of the SOA

  • amar
  • 13/10/08 31/05/09
  • unspecified
  • Offline
  • Sun, 05/04/2009 - 21:38

Frog

The LP is recommending the SOA.

Can you ask that should it be necessary he will still take all the legal actions he would otherwise do under rights enshrined by a liquidation.


Frog - this question i posted last week was missed from the list

  • HOPPER
  • 10/10/08 31/05/09
  • unspecified
  • Offline
  • Sun, 05/04/2009 - 20:12

Does Mr Simpsom now accept that it was a mistake in not pushing for the inflight transfers to be completed ? Given that the percentage recoveries from KSF London are likely to be far lower than the percentage recoveries from the rest of the KSFIOM asset base, a simple mathematical calculation shows that by not allowing the inflight transfers to complete, the Liquidator Provisional has most probably LOWERED the ultimate percentage payout for ALL depositors of KSFIOM, not just the inflighters. Would it not be in the interests of all depositors for Mr Simpsom to seek to reverse his earlier decision ?


This was discussed last week

  • frog
  • 10/10/08 13/09/09
  • a depositor
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  • Sun, 05/04/2009 - 20:55

This was discussed last week - and he agreed that depending on the return from the UK, that could be a negative move. Also the case that is in court this month, he also agreed he would have to abide by the judgement - but he feels that his advice was correct anyhow.


frog - thank you for your quick reply

  • HOPPER
  • 10/10/08 31/05/09
  • unspecified
  • Offline
  • Mon, 06/04/2009 - 11:26

Here is quick calculation - i can email a spreadsheet if anyone wants to see it.

KSFIOM HIGHLY SIMPLIFIED MODEL

% Recovery KSF London 50% Best "guestimate" right now
Impact on % of Inflights 1% The assumed impact on the percentage recoveries of all creditors of KSF London if inflights from KSFIOM go through

  1. Reclaiming Inflights Book % Recovery

Customer Deposits 794
Inflights 100

Total Deposits 894

Cash 147 100% 147
CDs 37 50% 18.5
Loan Book 404 95% 383.8
Net Deposit KSF London 302 50% 151
Inflights 100 50% 50

Total Assets 990 76% 750.3

        111%        83.9%
  1. Inflights Go Forward

Customer Deposits 794

Total Deposits 794

Cash 147 100% 147
CDs 37 50% 18.5
Loan Book 404 95% 383.8
Net Deposit KSF London 302 49% 147.98

Total Assets 890 78% 697.28

        112%        87.8%

Final list of questions for Mike Simpson - call on 6th Apr 2009

  • frog
  • 10/10/08 13/09/09
  • a depositor
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  • Sun, 05/04/2009 - 17:52

Dear all,

Here's the final list.

General Questions

  1. What is the current cash balance for the bank?

  2. How much interest has been earned so far?

  3. Any news about the KSFUK deposit from E&Y?

  4. What is the latest status on the sale of the loan book and any other interest in the purchase of the bank?

Open Questions

  1. Can we have a breakdown of the type and quantity of individual depositors/entities?

  2. Can we have a breakdown of the balance sheet in multicurrency (£, $ and Euro)

This Week’s Questions

  1. Since 8 October 2008 has any payment for expenses been claimed by and/or made to any of the bank's directors. If so would MS, as the LP please detail?
  2. Were Whelan and StockCube plc preferred creditors of KSF UK, which allowed them to receive their funds ahead of other creditors thus reducing the pot for return to KSF IOM?
  3. Does MS know
-whether Whelan was an unsecured creditor of KSF UK? Corporate or personal?
  4. You mentioned in your last note on April 2nd that KSFIOM cannot claim compensation from the FSCS in this regard. Why not? Exactly what basis did Whelan claim on?
  5. There are reports in the press today from The Times and others that PriceWaterhouseCoopers, acting as administrators for KSF IOM, have sold the stake in JJB Sports that they held as collateral on a loan. Is this the case? If so, why sell now when this almost amounts to a "firesale"? JJB's share price is very low at the minute. Could he further clarify how many shares were sold, and at what price?
  6. If a loan from HMG was arranged between IOMG and HMG, how does MS see this working in practice, as the LP is working for the benefit of depositors. It is something that has been in the air recently (in fact since Oct/Nov 2008) and as such I would expect it to have been discussed, internally within the Bank and suggested as an option to the Court, including its practicalities and potential timescale effects on repayments to depositors. If it has not been discussed as a potential option, why not, and when will it be?
  7. Regarding the £147m of assets of KSF London deposited in a segregated Bank of England Trust Account between 2 and 7 October 2008 under the orders of the UK FSA, please describe what actions you have taken to understand who these monies belong to and to register, if relevant, a claim against these monies.
  8. The FSC has said it will fund the cost of developing the SOA (Alix & Partners etc.,) but what about the ongoing cost of running the bank in anticipation of a successful SOA? The LP has indicated that some 35-40 staff have been kept on which must have incurred a much greater overhead than if the bank had gone into liquidation. Surely the FSC should also bear this cost. Can Mr. Simpson comment and put in an application for these to be covered fast.
  9. See today’s reports ref Directors salaries since 10/08.
    http://www.iomtoday.co.im/news/MHK-slams-payments-to-directors.5125692.jp
    Extract: Speaking afterwards, Mr. Watterson said: 'I find it appalling that over £100,000 has been paid in directors' fees, primarily for two directors in such a short period of time. This is a significant sum that cannot now be diverted to creditors, and part of the tab that must ultimately be picked up by the government. Suggest that if he has not already done so these not insignificant costs should be claimed from IOM Gov´t without delay. Mr. Watterson has kindly alerted them that this should happen.
  10. It is normal for the practioner/ liquidator provisional to prepare a Statement of Affairs, up to date. This is a list of assets and liabilities using expected realisable value rather than 'book' values. Creditors need one in order to have any idea of what they are voting on. Would you ask MS to produce one by 7th April 2009, for the above reason
  11. On Oct 2008 A Doherty stated that cash from KSFIOM had been placed in 3rd party banks in IOM, how much was this and has it all been reclaimed by LP
  12. What would happen should the SOA be rejected? Would there be automatic liquidation and activation of the DCS?
  13. How much has he billed in fees for the PL1 and PL2 to date. As they really are just in a holding mode until after the April 6th how has the PL acted to keep fees to a min. reflective of being a caretaker? Does he expect his staff/fees to scale up (by how much) in full liquidation/SOA
  14. On liquidation
- can he outline his plan of action for the first 3 months of liquidation if we go into liquidation? When would he form a creditors' committee? 
- Can he tell us what percentage of realisations he would think of holding in reserve and what percentage he would pay out? 
- Would payouts be time based i.e. quarterly, 6 monthly etc or based on monies available for pay out
- does he have view on the likely duration of liquidation?
  15. Would it be considered normal to hedge exposed foreign currency liability: that is the liability not covered by assets denominated in the particular currencies i.e. cash, bonds, loans etc.
  16. When MS was appointed PL when KSFIoM was put into Administration would it not have been sensible, given the situation was Administration and not Liquidation, and foreign currency accounts were a significant part of the banks business to consider such an action (hedging), and was it considered? In the light of his answers what would be his opinion now.
  17. Can MS explain why one of the 'four eyes' has now left the Company - Andrew John Davies - resigned 26 11 2008 - if legal action were to be taken, how would this now be achieved, as he is no longer employed at KSFIOM? It is assumed the other 'four eyes' Aidan Doherty is and will continue to be 'employed' at the bank.
  18. Has MS been consulted by IOMG and Alix Partners regarding the timescale of the SoA presently on the banks web site? If yes does he believe its workable
    a. If not consulted, does he agree with it or not, if not what is his proposed timescale
    b. Has he been consulted on the timescale if the DCS is triggered
    c. Has he been consulted or seen the comparison timescales for the SoA vs. DCS (or has he only seen the SoA timescale)
  19. When will we have the promised comparison of the SoA and DCS/liquidation?
 Whilst your paper will necessarily be detailed, if it is possible could we have an additional one that would be understandable to, let us say, the typical depositor?
  20. Why is accrued interest in the SoA treated differently to capital. Would this also be the same in a liquidation?
  21. What is MS take on IOMG (JS) positions that there is "too much risk" in IOM
 Bankruptcy and Company Law (DAG discussions with Alix Partners & J Spellman) to permit liquidation to proceed? For whom is there risk and what is its nature?
  22. Will the SOA limit the maximum potential recovery to between 60 and 70% of 
depositors funds and abandon the rest , to an ultimate purchaser of KSFIOM residual assets? If so to whom - KHF (as principal ) or former KSFIOM Directors, perchance?
  23. Whether adopting liquidation route or SOA , given current knowledge what is MS's estimate of the probable achievable limit on recovery of depositors funds without external borrowing or government largesse?
  24. Has MS seen the latest KHF creditors meeting updates February & March 2009? Do these improve the prospects for eventual relief from KHF under the parental guarantee given that Iceland appears to have received IMF funding? The question is asked in light of the March creditors update from KHF (as reconstituted) and the extension of the Iceland "Moratorium" to November 2009.
  25. What proportion of the "loans" in the KSFIOM 8/10/08 Trial balance involve "contingent deposits" owed to small - business borrowers whose funds are currently frozen in KSFIOM? Have any such borrowers refused to continue repayments until deposit funds are release, and if so in what amounts?
  26. What has been the effect of the Whalen payment from the administrators of KSFUK on the JBC Sports price for shares held as security by the Liq Prov of KSFIOM?
  27. What effect does MS expect from the release of the KSFUK administrators from the ING -related "overriding objective" moratorium ? In his view what should be E&Y 's payment priorities once clear of the UK Treasury moratorium, given that some large business operators have already received their deposits?
  28. What has been the role, if any , of the former company directors in pushing IOMG to press for the SOA conclusion? Are any remaining directors still influential in determining the likely future of KSFIOM?
  29. What new laws or regulations would the IOMG have to enact in order to endow the LP in an "SOA-administration" role with the same powers he would have for the recovery of funds as a fully-fledged liquidator?
  30. What in the opinion of the Liquidator Provisional is the most likely recoverable asset fraction from current estimates of the available funds?
  31. Given that MS in his Affidavit of 18 February 2009 showed that depositors
would appear to get more of their money back more quickly through the mechanism of the DCA than with the IOMG-proposed SOA, and the Deemster appeared to misinterpret this, can MS do anything to correct the Deemster's understanding prior to 9 April?With the SoA putting the Treasury in a position to veto any proposal on management of the disposal of the bank’s assets, how can the LP approve of this as the Treasury’s amount at risk is substantially lower than most of the other depositor groups, and also has a different agenda to that of the other depositors.
  32. How can we make a decision as to an SoA without further information from Ernst and Young about the probable recovery from KSF UK? These figures would have an enormous impact on whether the bank could be sold which would therefore affect whether liquidation would be a viable option.
  33. While I understand that the PL will be disclosing his costs to the Court in due course, is it possible for him to say how much he has spent on legal fees and other professional consultants since his appointment, and a breakdown of such costs, e.g. inflight legal expenses, Certificate of deposits legal expanese etc etc.

jjb shares

  • domicile1
  • 27/01/09 31/05/09
  • a depositor
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  • Fri, 03/04/2009 - 11:15

If as reported the jjb shares have been sold, presumably the LP only achieved a total of approx 6M. What has happened to the loan to Chris Ronnie for 195M has this been written off?


Wombat761's Questions for Mike Simpson on 6/4/2009

  • Wombat761
  • 30/01/09 20/03/15
  • a depositor
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  • Fri, 03/04/2009 - 11:14

MORE QUESTIONS FOR MIKE SIMPSON

FOR 6 APRIL 2009

  1. Any further contacts with Ernst  & Young & any update on balance sheet of KSFUK?
    
  2. Any updates on trial balance sheet for KSFIOM?

  3. Please provide overview of comparative likely asset recoveries proceeds Liquidation & Scheme of Arrangement.

  4. What is MS take on IOMG (JS) positions that there is "too much risk" in IOM
    Bankruptcy and Company Law (DAG discussions with Alix Partners & J Spellman) to permit liquidation to proceed? and

  5. For whom is there risk and what is its nature ?

  6. Will the SOA limit the maximum potential recovery to between 60 and 70% of
    depositors funds and abandon the rest , to an ultimate purchaser of KSFIOM residual assets?

  7. If so to whom - KHF (as principal ) or former KSFIOM Directors, perchance?

  8. Whether adopting liquidation route or SOA , given current knowledge what is MS's estimate of the probable achievable limit on recovery of depositors funds without external borrowing or government largesse?

  9. Has MS seen the latest KHF creditors meeting updates February & March 2009?

  10. Do these improve the prospects for eventual relief  from KHF under the parental guarantee given that Iceland appears to have received IMF funding?   
    
  11. The above question is asked in light of the March creditors update from KHF (as reconstituted) and the extension of the Iceland "Moratorium" to November 2009.

  12. What proportion of the "loans" in the KSFIOM 8/10/08 Trial balance involve "contingent deposits" owed to small - business borrowers whose funds are currently frozen in KSFIOM?

  13. Have any such borrowers refused to continue repayments until deposit funds are release, and if so in what amounts?

  14. What has been the effect of the Whalen payment from the administrators of KSFUK on the JBC Sports price for shares held as security by the Liq Prov of KSFIOM?

  15. Given that MS in his Affidavit of 18 February 2009 showed that depositors
    would appear to get more of their money back more quickly through the mechanism of the DCA than with the IOMG-proposed SOA, and the Deemster appeared to misinterpret this, can MS do anything to correct the Deemster's understanding prior to 9 April?

  16. What effect does MS expect from the release of the KSFUK administrators from the ING -related "overriding objective" moratorium ? In his view what should be E&Y 's payment priorities once clear of the UK Treasury moratorium, given that some large business operators have already received their deposits?

  17. What has been the role, if any , of the former company directors in pushing IOMG to press for the SOA conclusion?

  18. Are any remaining directors still influential in determining the likely future of KSFIOM?

  19. What new laws or regulations would the IOMG have to enact in order to endow the LP in an "SOA-administration" role with the same powers he would have for the recovery of funds as a fully-fledged liquidator?

  20. What , in the opinion of the Liquidator Provisional is the most likely recoverable asset fraction from current estimates of the available funds?
    

Thank you Nigel Frog for all your work in arranging these discussions with Mike Simpson and good luck!


Treasury Select Committee report

  • jmf
  • 16/10/08 31/10/09
  • a depositor
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  • Thu, 02/04/2009 - 14:23

The TSC report is due to be published this weekend. If there is anything relevant to the KSFUK or KSFIoM that falls within the provisional liquidator's ambit, please ask for his comments.


Provisional list of questions for Mike Simpson, 6th April 2009

  • frog
  • 10/10/08 13/09/09
  • a depositor
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  • Thu, 02/04/2009 - 12:22

Dear all,

Here is the up-to-date list. There is still; time for more questions, so please post!

General Questions

  1. What is the current cash balance for the bank?

  2. How much interest has been earned so far?

  3. Any news about the KSFUK deposit from E&Y?

  4. What is the latest status on the sale of the loan book and any other interest in the purchase of the bank?

Open Questions

  1. Can we have a breakdown of the type and quantity of individual depositors/entities?

  2. Can we have a breakdown of the balance sheet in multicurrency (£, $ and Euro)

This Week’s Questions

  1. Since 8 October 2008 has any payment for expenses been claimed by and/or made to any of the bank's directors. If so would MS, as the LP please detail?
  2. Were Whelan and StockCube plc preferred creditors of KSF UK which allowed them to receive their funds ahead of other creditors thus reducing the pot for return to KSF IOM?
  3. Does MS know
-whether Whelan was an unsecured creditor of KSF UK? Corporate or personal?
- what mechanism was used to pay him? Did FSCS pay out and stand in his place?
 Would that be legal?
- can he confirm that EY did not pay him directly?
  4. There are reports in the press today from The Times and others that PriceWaterhouseCoopers, acting as administrators for KSF IOM, have sold the stake in JJB Sports that they held as collateral on a loan. Is this the case? If so, why sell now when this almost amounts to a "firesale"? JJB's share price is very low at the minute. Could he further clarify how many shares were sold, and at what price?
  5. If a loan from HMG was arranged between IOMG and HMG, how does MS see this working in practice, as the LP is working for the benefit of depositors. It is something that has been in the air recently (in fact since Oct/Nov 2008) and as such I would expect it to have been discussed, internally within the Bank and suggested as an option to the Court, including its practicalities and potential timescale effects on repayments to depositors.
If it has not been discussed as a potential option, why not, and when will it be.
  6. Regarding the £147m of assets of KSF London deposited in a segregated Bank of England Trust Account between 2 and 7 October 2008 under the orders of the UK FSA, please describe what actions you have taken to understand who these monies belong to and to register, if relevant, a claim against these monies.
  7. The FSC has said it will fund the cost of developing the SOA (Alix & Partners etc.,) but what about the ongoing cost of running the bank in anticipation of a succesfull SOA? The LP has indicated that some 35-40 staff have been kept on which must have incurred a much greater overhead than if the bank had gone into liquidation. Surely the FSC should also bear this cost. Can Mr Simpson comment and put in an application for these to be covered fast.
  8. see todays reports ref Directors salaries since 10/08.
    http://www.iomtoday.co.im/news/MHK-slams-payments-to-directors.5125692.jp
    Extract: Speaking afterwards, Mr Watterson said: 'I find it appalling that over £100,000 has been paid in directors' fees, primarily for two directors in such a short period of time. This is a significant sum that cannot now be diverted to creditors, and part of the tab that must ultimately be picked up by the government. Suggest that if he has not already done so these not insignificant costs should be claimed from IOM Gov´t without delay. Mr Watterson has kindly alerted them that this should happen.
  9. It is normal for the practioner/ liquidator provisional to prepare a Statement of Affairs, up to date. This is a list of assets and liabilities using expected realisable value rather than 'book' values. Creditors need one in order to have any idea of what they are voting on. Would you ask MS to produce one by 7th April 2009, for the above reason
  10. On Oct 2008 A Doherty stated that cash from KSFIOM had been placed in 3rd party banks in IOM, how much was this and has it all been reclaimed by LP
  11. What would happen should the SOA be rejected. Would there be automatic liquidation and activation of the DCS?
  12. How much has he billed in fees for the PL1 and PL2 todate. As they really are just in a holding mode until after the April 6th how has the PL acted to keep fees to a min. reflective of being a caretaker. Does he expect his staff/fees to scale up (by how much) in full liquadation/SOA
  13. On liquidation
- can he outine his plan of action for the first 3 months of liquidation if we go into liquidation? When would he form a creditors' committee?
- can he tell us what percentage of realisations he would think of holding in reserve and what percentage he would pay out?
- would payouts be time based ie quarterly, 6 monthly etc or based on monies available for pay out
- does he have view on the likely duration of liquidation?
  14. Would it be considered normal to hedge exposed foreign currency liability: that is the liability not covered by assets denominated in the particlular currencies i,e cash, bonds, loans etc.
  15. When MS was appointed PL when KSFIoM was put into Administration would it not have been sensible, given the situation was Administration and not Liquidation, and foreign currency accounts were a significant part of the banks business, , to consider such an action (hedging), and was it considered? In the light of his answers what would be his opinion now.
  16. Can MS explain why one of the 'four eyes' has now left the Company - Andrew John Davies - resigned 26 11 2008 - if legal action were to be taken, how would this now be achieved, as he is no longer employed at KSFIOM? It is assumed the other 'four eyes' Aidan Doherty is and will continue to be 'employed' at the bank.
  17. Has MS been consulted by IOMG and Alix Partners regarding the timescale of the SoA presently on the banks web site? if yes does he believe its workable
    a. If not consulted, does he agree with it or not, if not what is his proposed timescale
    b. Has he been consulted on the timescale if the DCS is triggered
    c. Has he been consulted or seen the comparison timescales for the SoA v's DCS (or has he only seen the SoA timescale)
  18. When will we have the promised comparison of the SoA and DCS? Can this comparison be one that is understandable to laymen rather than a lengthy, highly technical paper?
  19. How can we make a decision as to an SoA without further information from Ernst and Young about the probable recovery from KSF UK? These figures would have an enormous impact on whether the bank could be sold which would therefore affect whether liquidation would be a viable option.

Personal details

  • nivit
  • 19/10/08 31/05/09
  • a depositor
  • Offline
  • Fri, 03/04/2009 - 08:31

This question may have already been asked but if not; Did PwC pass on my personal details to the IoM government, if so why and on what authority. if they didn't can they explain how the IoM government came to be in possession of my name and address?


Personal Data

  • Tricky Dicky
  • 24/10/08 30/05/09
  • a depositor
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  • Fri, 03/04/2009 - 09:24

I have not applied for either EPS 1 or 2. This morning I received from Mr Bell (IOMG), a circular letter with all the documents necessary for me to claim EPS 2.
So as nivit asks and I ask now, how did IOMG obtain my name and address, which would only be available from KSFIOM. Please inform MS and for MS to inform IOMT (Mr Bell) that this is now being taken up with my personal lawyers.


Whelan / Stockcube - comments by LP on update. Expand question?

  • icdbrazil
  • 10/10/08 30/11/09
  • a depositor
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  • Thu, 02/04/2009 - 16:42

Quote from latest LP update:

Quote: It is our understanding that the Financial Services Compensation Scheme ("FSCS") has paid compensation in full to both Mr Whelan (to allow for the purchase of the fitness clubs business from JJB plc, which will be rebranded as DW Sports Fitness) as well as deposits due to Stockcube plc. Stockcube plc has announced that its cash on deposit as well as interest due from KSFUK has been compensated by FSCS.

The joint Liquidators Provisionally wish to clarify their understanding that compensation to these parties has not been provided by KSFUK, but by the FSCS. KSFIOM cannot claim compensation from the FSCS in this regard. Unquote.

WHY NOT? Exactly what basis did Whelan claim on? (Stockcube understood as they met pre defined small company criteria for compensation).


Q18. Please, a very important change of wording

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
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  • Thu, 02/04/2009 - 16:33

Intro:
Whilst I didn't even know he was charged with this task, can you point me to the reference?, it would be great to see his output.
We need all the information available.
The wording of this question is allowing for the production of a 'dumbed down' comparison.
Prior to producing a 'dumbed down' version, which is an excellent idea and I would guess a real challenge at the same time as being a legal minefield, a lengthy highly technical paper must be produced.
I want to see this "..lengthy, highly technical paper?
Personally I'm looking to extract costing details.

Proposed substitution:
When will we have the promised comparison of the SoA and DCS?
Whilst your paper will necessarily be detailed, if it is possible could we have one that would be understandable to, let us say, the typical depositor?


Q 16 b)

  • Tricky Dicky
  • 24/10/08 30/05/09
  • a depositor
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  • Thu, 02/04/2009 - 13:24

Would MS please ask the FSC for the information concerning the whereabouts of the 'four eyes' leading up to the 8th October 2008? The FSC I believe should be informed by them of there wehreabouts and hence hold a record of this


Expenses Incurred

  • Ally
  • 13/10/08 31/05/09
  • unspecified
  • Offline
  • Thu, 02/04/2009 - 13:18

While I understand that the PL will be disclosing his costs to the Court in due course, is it possible for him to say how much he has spent on legal fees and other professional consultants since his appointment, and a breakdown of such costs, e.g. inflight legal expenses, Certificate of deposits legal expanese etc etc.


KSFIOM Directors' Expenses

  • Done like a Kipper
  • 10/10/08 n/a (free)
  • a depositor
  • Offline
  • Thu, 02/04/2009 - 06:26

Since 8 October 2008 has any payment for expenses been claimed by and/or made to any of the bank's directors. If so would MS, as the LP please detail?


PREFERENTIAL CREDITORS

  • everhopeful
  • 11/10/08 n/a (free)
  • a depositor
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  • Wed, 01/04/2009 - 11:39

This is really a question for E&Y UK but Mike Simpson should also be asking it even though he is not on the Creditors' Committee. Were Whelan and StockCube plc preferred creditors of KSF UK which allowed them to receive their funds ahead of other creditors thus reducing the pot for return to KSF IOM?

Will E&Y reveal how much is expected to be returned to KSF IOM from KSF UK before a possible SOA gets voted on? Weren't we supposed to hear by the end of March? The amount has a massive bearing on what % of our deposits we may get back.

I am not in favour of the SOA paid out over time because we will end up spending our savings just to live for the next 3 years or however long it takes to pay out x% and so will have nothing left to invest for income after the money runs out. I'm sure this wil affect many depositors.


PM'S questions Wed 1st April

  • sleepless uk
  • 16/01/09 31/05/09
  • a depositor
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  • Wed, 01/04/2009 - 12:08

When asked today by the MP for Oldham if Christies Hospital could have their money back,Brown,after waffling about what a good job they do,said that it was all the fault of the regulators of the Icelandic banks and once again nothing to do with him,however he agreed to meet with them as requested by the MP, but gave no indication whatsoever as to returns.( One day this aerosole "quote" will actually admit that something has been his fault.It can't be easy being perfect all the time.)


JJB Sports stake sold by PWC - firesale?

  • allyourbase
  • 12/10/08 31/05/09
  • a depositor
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  • Tue, 31/03/2009 - 20:41

There are reports in the press today from The Times and others that PriceWaterhouseCoopers, acting as administrators for KSF IOM, have sold the stake in JJB Sports that they held as collateral on a loan.

Is this the case? If so, why sell now when this almost amounts to a "firesale"? JJB's share price is very low at the minute. Could he further clarify how many shares were sold, and at what price?

I don't see how the figure of 65 million shares is correct (that'd be around 73 million GBP at the current price, which is nearly three times over JJB's market capitalisation.


Question for Mr Simpsom, 6 April

  • HOPPER
  • 10/10/08 31/05/09
  • unspecified
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  • Tue, 31/03/2009 - 16:38

Please ask the following question. It has been asked before, but Mr Simpsom keeps dodging the point, so please ask again.

I can provide a numerical example if needed - it is on the forum

Does Mr Simpsom now accept that it was a mistake in not pushing for the inflight transfers to be completed ? Given that the percentage recoveries from KSF London are likely to be far lower than the percentage recoveries from the rest of the KSFIOM asset base, a simple mathematical calculation shows that by not allowing the inflight transfers to complete, the Liquidator Provisional has most probably LOWERED the ultimate percentage payout for ALL depositors of KSFIOM, not just the inflighters. Would it not be in the interests of all depositors for Mr Simpsom to seek to reverse his earlier decision ?


Potential Loan

  • Tricky Dicky
  • 24/10/08 30/05/09
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  • Tue, 31/03/2009 - 14:56

If a loan from HMG was arranged between IOMG and HMG, how does MS see this working in practice, as the LP is working for the benefit of depositors. It is something that has been in the air recently (in fact since Oct/Nov 2008) and as such I would expect it to have been discussed, internally within the Bank and suggested as an option to the Court, including its practicalities and potential timescale effects on repayments to depositors.
If it has not been discussed as a potential option, why not, and when will it be.


£147m Trust Account at Bank of England

  • HOPPER
  • 10/10/08 31/05/09
  • unspecified
  • Offline
  • Tue, 31/03/2009 - 10:34

Please ask Mike Simpsom the following.

Regarding the £147m of assets of KSF London deposited in a segregated Bank of England Trust Account between 2 and 7 October 2008 under the orders of the UK FSA, please describe what actions you have taken to understand who these monies belong to and to register, if relevant, a claim against these monies.


Question to M Simpson for 6 Apr Conf call

  • Flower
  • 18/10/08 31/05/09
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  • Mon, 30/03/2009 - 19:15

The FSC has said it will fund the cost of developing the SOA (Alix & Partners etc.,) but what about the ongoing cost of running the bank in anticipation of a succesfull SOA?

The LP has indicated that some 35-40 staff have been kept on which must have incurred a much greater overhead than if the bank had gone into liquidation. Surely the FSC should also bear this cost.

Can Mr Simpson comment and put in an application for these to be covered fast.


Significantly increased costs vs immediate liquidation

  • icdbrazil
  • 10/10/08 30/11/09
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  • Wed, 01/04/2009 - 12:25

Flower raises a very good point. Also see todays reports ref Directors salaries since 10/08.

http://www.iomtoday.co.im/news/MHK-slams-payments-to-directors.5125692.jp

Extract: Speaking afterwards, Mr Watterson said: 'I find it appalling that over £100,000 has been paid in directors' fees, primarily for two directors in such a short period of time. This is a significant sum that cannot now be diverted to creditors, and part of the tab that must ultimately be picked up by the government.

Suggest that if he has not already done so these not insignificant costs should be claimed from IOM Gov´t without delay. Mr Watterson has kindly alerted them that this should happen.

On the comment ´high price for failure´- Bell & Co still drawing salary of course but no comment on that!


Gross payments for incompetence

  • bobwin
  • 23/12/08 n/a (free)
  • a depositor
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  • Fri, 03/04/2009 - 09:53

Is there no end to this farce---directors-greed and avarice--two of them get 100 grand in 6 months for what?????---Depositors get EPS which is maxed at 10,000 per head in a longer time frame and it is their OWN money--greedy , amoral, aerosoles.


Who is in charge, the Liquidator or the Directors?

  • brianbrasil1
  • 17/11/08 n/a (free)
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  • Thu, 02/04/2009 - 00:09

Ig the Liquidator is in charge, what are the directors doing and why is the Liquidator paying them?


Statement of Affairs

  • Tricky Dicky
  • 24/10/08 30/05/09
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  • Sat, 28/03/2009 - 15:14

It is normal for the practioner/ liquidator provisional to prepare a Statement of Affairs, up to date.

This is a list of assets and liabilities using expected realisable value rather than 'book' values. Creditors need one in order to have any idea of what they are voting on.

Would you ask MS to produce one by 7th April 2009, for the above reason


A Doherty

  • Tricky Dicky
  • 24/10/08 30/05/09
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  • Mon, 30/03/2009 - 19:45

In Oct 2008 A Doherty stated that cash from KSFIOM had been placed in 3rd party banks in IOM, how much was this and has it all been reclaimed by LP, or is it still in the 3rd party banks gaining interest??


Allowing sufficient time to vote

  • brianbrasil1
  • 17/11/08 n/a (free)
  • a depositor
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  • Sat, 28/03/2009 - 12:41

As far as I can see the provisional programme allows less than 4 weeks to turnaround the voting papers. Unless electronic voting is permitted, I would like to see the time extended to at least six weeks to allow for our 16-day + mailing time


Re Alowing suffucuent time to vote

  • sabi Star
  • 10/10/08 n/a (free)
  • unspecified
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  • Sat, 28/03/2009 - 17:52

Please ask for electronic voting.
Many people abroad will NOT be able to send back voting papers in 4 weeks ( eg Middle East etc) - it will take that long to receive them! Also mail not that reliable - we ( 2 large buildings in Dubai) did not get any mail at all - not even local - for 10 days recently when our "deliverer" was changed.


with respect, but seriously?

  • chris watson
  • 23/10/08 31/03/10
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  • Sat, 28/03/2009 - 12:52

Please don't take this the wrong way, but does it really take 6 weeks to mail (I presume) Brazil?

I only express my astonishment because I often mail documents to quite remote parts of the world and can usually get turnaround in under a fortnight.

Of course, I would support your request if this is the case and electronic voting is unavailable, but for some, delay in activating any kind of payment due to the voting period being extended, will hurt.


I have no guarantee of any

  • expat
  • 10/10/08 31/05/09
  • unspecified
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  • Mon, 06/04/2009 - 15:55

I have no guarantee of any mail arriving at all! Its often burnt if they can't be bothered to deliver it! Its regularly stolen from the post box or simply stolen becaue it looks foreign! If it does arrive it can take weeks or even months. So I want electronic voting please.


Snail Mail

  • brennajm
  • 22/10/08 n/a (free)
  • a depositor
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  • Thu, 02/04/2009 - 13:37

Yes, regular (snail) mail can take weeks to months to reach us here in Saudi Arabia. It depends on the time of year (Ramadan for example is disasterous for snail mail) and the mood of the post office boys - it seems to me ie. whether or not they can be bothered to sort it or not. Mostly though, things do arrive - eventually!


Postal delays

  • brianbrasil1
  • 17/11/08 n/a (free)
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  • Sun, 29/03/2009 - 23:53

Understand your concern, but normal mail to here is about 8-10 days and then we have only one delivery a week - so often over two weeks one way. Then registered post takes, on average 16 days back to the IoM.

So would ask for electronic voting, please to avoid eventual paymen delays


Mail

  • icdbrazil
  • 10/10/08 30/11/09
  • a depositor
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  • Sat, 28/03/2009 - 13:39

IMO under two weeks should be enough, although with normal mail no guarantee it would get to destination of course. If sending anything important from here I always use registered mail (Sedex International at the correios). One would hope that forms available for download.


Post in rural Brasil

  • brianbrasil1
  • 17/11/08 n/a (free)
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  • Sun, 29/03/2009 - 23:58

Please see my note to Chris Watson - An electronic voting option would resolve problems worldwide.


IN FLIGHT FUNDS

  • benchar
  • 10/10/08 31/08/09
  • a depositor
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  • Sat, 28/03/2009 - 11:30

SORRY TO RAISE THIS SORDED ISSUE AGAIN,BUT IT IS VERY RELAVENT TO SOME OF US

Does Mike Simpson Know the date of the test case bought by HABANA RE "IN FLIGHT FUNDS"? ( adjourned to April )
Is it being heard on IOM ?
Who is the action being taken against ?
Will he undertake to advise DAG immediately of the outcome of the legal action?

WILL HE NOT RECONSIDER AND ALLOW THESE FUNDS TO PASS TO INTENDED DESTINATION,HIS ACTION HAS ONLY ADDED TO OUR MISSERY.


Certificates of deposit

  • podather
  • 10/10/08 31/05/09
  • a depositor
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  • Thu, 26/03/2009 - 00:05

The certificate of deposits have now matured to the value of £36 million. Has this money been recovered or is there legal action regarding them
If so, what is the status of this legal action and how confident are you that it wont be successful and you will recover the funds?

thanks


The STlg 550m QUESTION FOR BOTH MR SIMPSON & DAG LAWYERS

  • Wombat761
  • 30/01/09 20/03/15
  • a depositor
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  • Wed, 25/03/2009 - 12:59

Refer : discussion of TSC-findings on KSFIIOM-Transfer to KSFUK

http://chat.ksfiomdepositors.org/forum-topic/when-will-tsc-produce-its-f... - "My understanding of the TSC evidence" by steveservaes

I may be wrong, but the issue arising is that this may be prima facie evidence of a potential fraudulent preference being provided by KSFIOM to KSFUK . This means that the eventual liquidator /administrator MUST HAVE POWERS TO SUE for retroactive return of the funds , whether the case proceeds to (a) liquidation (Liquidator would normally have the necessary powers) OR (b) Scheme of Arrangement. Under an SOA the answer is by no means clear , and even Mr. Simpson at the last questioning could not answer the question affirmatively.. Related questions , of course are the liquidator/administrator's powers to pursue fraudaulant or collusive behaviour as between directors third parties and the IOMG.

DAG MUST BRIEF ITS OWN LAWYERS TO FOLLOW THIS ISSUE UP BASING THEIR CONCLUSIONS ON BOTH IOM AND BRITISH CORPORATIONS & INSOLVENCY LAW - AND THE SOONER THEY DO THIS THE BETTER.

Nigel , can you make sure the issue of the legal powers of the liquidator/administrator under a SOA is fully raised with DAG Legal Managemen?.

If there are insufficient powers for the administrator under any resulting SOA , then all depositors should vote for LIQUIDATION - en masse!

These are absolutely PIVOTAL ISSUES for DAG constituency however placed.


QUESTION REFERRED FOR MR SIMPSON

  • Wombat761
  • 30/01/09 20/03/15
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What salaries do the directors pull?

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
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  • Mon, 23/03/2009 - 15:40

Can we not find some wording to get to the bottom of what the directors could possibly be doing to doing to justify their salary (that is assuming they are not gentleman and doing the work pro bono).
For instance what would happen if the directors were dispensed with?
I assume in a Administration there might be reason to have the directors present, or some.
In a liquidation they would be dispensed with?
What hours have they put in?
Can MS give us an example, concrete, of their productive input?
MS obviously "works"with them. He must have gathered some impression of why they haven't made statements. What are they? Would he convey to them our wish for a statement, as I believe they suggested they would make months ago, so that he can inform us/DAG within the next couple of days, there is no need to wait for the next Q&A session.
Isn't he as LP their 'boss'?

Another question:
How disorganised are the administrative systems at the bank?
How disorganised is the computer system.
Is such disorganisation behind the slowness and some apparent confusion in the production of EPS documentation?

Another question:
Can MS describe his working week for us?


It hurts

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
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  • Mon, 23/03/2009 - 20:09

Isnt this adding insult to injury ?
Paying the very people who assured us our savings were safe.


Liquidation and DCS

  • jmf
  • 16/10/08 31/10/09
  • a depositor
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  • Fri, 20/03/2009 - 18:04

I would like to second a comment made elsewhere about getting a simple explanation of what would happen should the SOA be rejected. Would there be automatic liquidation and activation of the DCS? What would comprise the funds for the DCS if the banks are not on board, or are they? Would the scheme revert to 20,000? Could you press Mr Simpson again about his view of the SOA.

Frog, thank you for your great efforts. They are very much appreciated.


Kaupthing parental guarantee

  • clodhopper
  • 18/01/09 31/05/09
  • a depositor
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  • Thu, 19/03/2009 - 19:25

It would appear that Kaupthing bank has financed a management consortium which will take over the Mosaic business. Why can Kaupthing finance these ventures when it is unable to honour it's written parental guarantee to KSFIOM depositors?
We would have expected MS to have been asking this type of question of the parental bank while he was in Iceland at the depositors expense - is he being fobbed off?


Fees to date

  • uksmashandgrab
  • 23/12/08 31/05/09
  • not prepared to answer
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  • Thu, 19/03/2009 - 18:05

How much has he billed in fees for the PL1 and PL2 todate. As they really are just in a holding mode until after the April 6th how has the PL acted to keep fees to a min. reflective of being a caretaker. Does he expect his staff/fees to scale up (by how much) in full liquadation/SOA


With regard to your first

  • frog
  • 10/10/08 13/09/09
  • a depositor
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  • Fri, 20/03/2009 - 17:45

With regard to your first question, on the last call, he said he would be submitting his expenses 'very soon' - so I'll ask a modified version of that question depending on if he has done that by the 6th. The second one is a good one!


questions to Mike Simpson

  • banna
  • 15/10/08 01/03/10
  • a depositor
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  • Thu, 19/03/2009 - 16:56

To expand on the Whelan issue.
Does MS know
-whether Whelan was an unsecured creditor of KSF UK? Corporate or personal?
- what mechanism was used to pay him? Did FSCS pay out and stand in his place?
Would that be legal?
- can he confirm that EY did not pay him directly? - unthinkable I hope

On liquidation
- can he outine his plan of action for the first 3 months of liquidation if we go into liquidation? When would he form a creditors' committee?
- can he tell us what percentage of realisations he would think of holding in reserve and what percentage he would pay out?
- would payouts be time based ie quarterly, 6 monthly etc or based on monies available for pay out
- does he have view on the likely duration of liquidation?


Question for Mike Simpson

  • Anne Patrick
  • 27/10/08 15/07/09
  • a depositor
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  • Thu, 19/03/2009 - 10:05

Has he been told what information the sealed papers contain .