Some detailed thoughts on E&Y (KSFUK) latest 6 Monthly Report

  • Gordon 45
  • 22/10/08 n/a (free)
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Posted: Mon, 09/05/2011 - 15:57

Hi All,

Now posting my thoughts on the E&Y (KSFUK) 7.4.2011 Progress Report as an attachment in order to keep the format, hopefully.

Obviously not all the data in the report made for good reading, but as we all know agreement was reached on the £246.1m on which returns to our JLs will be made – and that was good.

Also very good news was the upping of their estimates on which they will pay out unsecured creditors - from the 75-84p/£ up now to between 78-86p/£ - another £7.383m to us over the term of the their Administration of KSFUK. E&Y are gradually getting nearer our JLs KSFIOM loan book estimated returns of between 84.95-93.137% (although I still stay at 90% at present)

E&Y still working hard to get people to refinance their loans, or taking people to court. Note the increase in write-offs from £40m in April to £79m as at October 2010 and now only up one more million to £80m – that might be construed as good news if they have reached the peak in their main problem areas – but who knows. Not good regarding lost cash but good in the fact they are dealing with this hard area of balancing extensions of loans with saying enough is enough. Still only just over 1% of the original book value I think. We are currently at around 0.276% I think, based on £905m and 0.600% on £416m from loan book.

They are also continuing to sell on finished developments or trying to get planning modified to change existing part built or unbuilt developments with a view to making them more appealing to would be clients.

So latest data not much different from the previous 6 months, but I see if you look at the latest group structure (Appendix C) you can see the number of companies within the UK arm of KSFUK (excluding Kaupthing hf) has dropped from 43 to 32 companies. I would think this is due to companies being sold off, put into ‘solvent’ Liquidation or ‘Insolvent Liquidation’. In order to maximise returns or minimise losses to the group. Also worth noting that under Section 3 of the Report – ‘Update on Conduct of the Administration’ there is a sub section on ‘Asset Finance Subsidiaries’. This is a part of the group who are solvent and profitable and worth c£48m. But they owed KSFUK £536m when the group went into Administration in 2008. They have now been partly refinanced through a fixed rate loan facility. This has been beneficial to KSFUK who have seen repayments from this subsidiary division totalling £286m of the £536m including help through the refinancing fixed rate facility.

They have not given any dates re any more future dividends and that is not good to hear, other than the 6th dividend due around 24.5.2011 at a payment of at least 5p/£. It is harder to estimate what they might pay but I feel 5-6p/£ is on the cards at least. It would have been nice to hear more definite news re future dividends but I still think another dividend is likely late in the year at again around 5p/£.

The intake from Oct 2010 to April 2011 on their loan books is far more than the previous six months and that augers well for the dividend due around 24.5.2011.

Worth noting also, as Anrigaut mentioned, that Mike Simpson is now part of the KSFUK Creditors Committee on behalf of KSFIOM, following the resignation of ‘Transport for London’ from the Committee. I see D RAM thinks it is too late and it would have been better if one of our four reps from the COI was on the KSFUK Committee. Sorry but I have to disagree as our reps report back nothing to us, as it is, from the COI meetings. I feel personally that this move will allow our JL the opportunity to hear things first hand as they affect or could affect the Administration of KSFUK – and therefore what the JLs receive on our behalf from the KSFUK Administrators. But again only my opinion and many of you may disagree and rightly so. Not to say our 4 reps are not working hard on the COI for all our benefits – but their ‘hands are tied’ with regard to informing us of what goes on at the COI meetings, and it would be the same if one was part of the KSFUK Creditors Committee.

So I still feel we are heading towards an overall return from E&Y (KSFUK) of around the same as our KSFIOM Loan Book, 84.95 – 93.137% and according to my calcs between 95-100% to us from our JLs. But that is obviously looking at the best scenarios.

You may not agree with all or part of the above and that is understandable, because it is as usual made up of fact, hoped for returns, guestimates into the future, no big losses on our 10 large loans and my own interpretation of how things may pan out.

But anyway stay positive,

And as usual,

God Bless,

Gordon 45

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Tao

  • bellyup
  • 10/10/08 09/01/10
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  • Thu, 12/05/2011 - 20:04

What is this son of a vampire squid stuff viejo?

Trust its not the old vino collapso hablando.


What f***** use are the COI?

  • follow_the_tao
  • 11/10/08 31/05/09
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  • Thu, 12/05/2011 - 07:40

I note this comment from above:
"Sorry but I have to disagree as our reps report back nothing to us, as it is, from the COI meetings."

I'm going to dig out my mail from that son of the vampire squid that sits over over the face of humanity and post it here.

Yes you!! You with all those hectares in Devon, what the f**k are you doing? I'm about to respond.

Are our representatives on the CoI corrupt?

If Gordon45 is disposed to make a criticism, and a more docile person I can't imagine, just what the f**k is happening?

And I think I've got another story brewing over Simpson's behaviour. I received an email from my bank today. Somebody has requested that the last distribution of funds be withdrawn. My bank has been asked to return the funds.
I'm pursuing the issue at the moment.

Be back soon.


It's always great to hear

  • IceCrusher
  • 14/10/08 25/10/11
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  • Thu, 12/05/2011 - 18:42

It's always great to hear from another who has not got his brains stuck up his rear-end, thanks tao!


Great, Gordon

  • Lostinspace
  • 13/10/08 31/05/09
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  • Thu, 12/05/2011 - 01:52

Once again, the depth of your analysis and level of detail are astounding! I don't know where we'd be without you. A big vote of thanks for all your hard work.


This is really great news amd

  • IceCrusher
  • 14/10/08 25/10/11
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  • Thu, 12/05/2011 - 20:30

This is really great news amd I'm glad someone understands it! Can you please precis the information and let the rest of us know what you now know?


thanks Gordon

  • sambururob
  • 10/10/08 n/a (free)
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  • Tue, 10/05/2011 - 11:12

Thanks Gordon,
The usual succint brilliance.
Rob & Wendy


Here Here!

  • Codpeace
  • 23/10/08 30/11/12
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  • Tue, 10/05/2011 - 15:37

Excellent summary, Gordon. Very much appreciate all of your hard work on our behalf.


Hear, Hear

  • uptight61
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  • Wed, 11/05/2011 - 02:28

Identical sentiments come from this depositor. Thank you Gordon for all your hard work and your effort in clarifying the situation for fellow depositors. THANK YOU!


Gordon

  • Blades
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  • Wed, 11/05/2011 - 12:36

Many thanks again Gordon. You analysis is so helpful to everyone.