Some Thoughts on the SL's '6 Monthly Progress Report of 9.1.2018

  • Gordon 45
  • 22/10/08 n/a (free)
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Posted: Tue, 27/02/2018 - 22:00

Hi Folks,

Some thoughts on the SL’s ‘6 Monthly’ Progress Report (9.1.2018).

Are we almost there at last! Having read the latest report I now detail my thoughts on it below. Big change from July 2017 Report as the last loan has now been repaid in full and Litigation not a ‘goer’ (not surprising). It only leaves the Unresolved/Unclaimed to be finalised (no change from last time). The end of the Liquidation now seems to be in sight according to the SL. I now post what I think are the main points in the January 2018 Progress Report and apologise if I have missed points or disregarded some points that are important to others.

Page 6 - As Anrigaut has said; under Section 3.2 and 3.3 of the Introduction two important points are stated:

3.2 - “The Liquidator will shortly be applying to the Court for further directions in respect of matters which need to be dealt with in order to make the final distribution and bring the liquidation to a close”

3.3 - And “that one further dividend will be paid to creditors in respect of each class of interest and expects that to be paid within the next six months”. “whilst timing and amount of the dividend cannot yet be determined with certainty”.

We can expect a further ‘6 monthly’ update dated 9.7.18 (Page 6).

Final returns from KSFIOM loan book are 95.8% (page 11).

‘Write – offs’ £16.4m (3.9%) of the loan book - very low (page 11). That is to me a fantastic achievement by the SL.

Page 13 re Unresolved & Unclaimed. SL still showing £2.5m Unresolved and £1.5m Unclaimed. Presumably the statement by the SL within the Introductory Section of this Report under Section 3.2, where he states he will shortly be applying to the Court for further directions in respect of matters which need to be dealt with in order to make the final distribution, includes the matters of ‘Unresolved’ and ‘Unclaimed’.

Page 7 & 12 – Parental Guarantee – All amounts receivable from Khf have now been realised.

Page 12 - Investigation – This is in relation to the Bank’s Directors re the ‘winding up order’. Based on the latest advice on these matters, it appears SL now saying, most unlikely that there would be any value for Creditors in pursuing the potential claims.

Page 13 – To assist Life Companies and their Policyholders, the SL approached and received approval from the IOMC to accept assignments from Life Companies on behalf of their Policyholders without the need for a costly Court Order. Hopefully this has helped lower or stopped ongoing charges taken by Life Companies from their Policyholders. Unfortunately I can still say even at this late stage some Life Companies have not yet allowed this re-assignment to take place. Hopefully this should now become irrelevant with the imminent end to the Liquidation.

Liquidation costs – Page 14 - There is a spend so far of £25.3m excluding VAT, compared to the previously estimated overall total of .£24.3m. Worth noting if no more cash becomes available from ‘Unresolved/Unclaimed’, then the cash balance we hold at present will go down as any future costs are paid out.

So, almost there, SL has now said - page 6, that he hopes the last dividend will be paid within the next 6 months (By late June/early July 2018?).

The concluding bits to be seen to are;

1.Still balance of £2.5m Unresolved – to be resolved + £1.5m Unclaimed =£4.0m
2.Approval by the Court on directions taken to finalise the Liquidation
3.Payment of final distribution within 6 months and Liquidation finalised

The above are the comments I felt were worth making. I will update parts of my background data in readiness for the SL’s Quarterly Update due at end of March 2018. Based on the current cash total of £19.4m I think there is now £15.4m net available for payments (Inc the approx £3.5m for Contractual interest). This takes no account of existing/further costs/expenses due.

In page 13 SL states PwC ‘time costs’ only paid up to 31.3.2017. So, it would appear to me, that ‘time costs’ plus other costs are still due to be paid from 1.4.2017 up until the present and beyond, to the finalisation of the Liquidation. If I am correct this would affect the current £15.4m available for distribution. This might be mitigated if any cash is recovered from current ‘Unresolved’ (£2.5m) and ‘Unclaimed’ (£1.5m) in favour of the SL (and therefore the Liquidation).

So, the Liquidation is now hopefully coming to a close, within 6 months - that would be Fab.

Take care,

And God Bless

Gordon 45

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Gordon and Anrigaut

  • Codpeace
  • 23/10/08 30/11/12
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  • Wed, 28/03/2018 - 10:44

Thanks for sticking with this over all the years - Great work, very much appreciated:)

Thank you

  • sunny1
  • 16/10/08 30/05/14
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  • Fri, 23/03/2018 - 09:17

Thank you again Gordon and Anrigaut. This is good news.

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  • Blades
  • 19/10/08 n/a (free)
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  • Wed, 28/02/2018 - 21:07

Thank you once more Gordon.

Thank you Gordon. Really good

  • sambururob
  • 10/10/08 n/a (free)
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  • Wed, 28/02/2018 - 16:21

Thank you Gordon. Really good news. Have a good day. Rob and Wendy

Thank you Gordon for all your work over the years

  • ozdog
  • 10/10/08 30/11/09
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  • Thu, 01/03/2018 - 02:19

Whoever it was who said in 2008 the liquidation would take 10 years was spot on!

My wife and I are not tax payers in the UK, but does anyone know if interest payments when they are made are likely to be reported as income to HMRC?

Tax Liability in UK for Interest Payments

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
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  • Mon, 05/03/2018 - 09:24

I'm no expert but I understand that banks under money laundering legislation have an obligation to report to HMRC significant interest payments to British citizens. However, if you are not resident in the UK for tax purposes I cannot see how you would be liable to tax on income paid from the IOM which is outwith the UK.