Thoughts on E&Y (KSFUK) 7.10.2010 Progress Report

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
  • Offline
Posted: Fri, 12/11/2010 - 18:58

Hi All,

Now posting my thoughts on the E&Y (KSFUK) 7.10.2010 Progress Report as an atachment in order to keep the format, hopefully.

Obviously not all the data in the report made for good reading, but for the 1st time, I think, E&Y said they are nearing agreement with our JLs re the base value on which KSFIO (unsecured creditors) will be paid out. Although they did not mention the £250m specifically.

Also very good news was the upping of their estimates on which they will pay out unsecured creditors - from the 65-74p/£ up now to between 75-84p/£ - another £20.5m to us over the term of the their Aministration of KSFUK.

Also felt they were 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. No 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 trying 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.

Thery have managed to get some cash back from Finland and Switzerland and have sold on more of their Icelandic holdings for par or better.

They have not given any dates re any more future dividends and that is not good to hear.

The intake from April to Oct on their loan books was far less than that in at April 2010, but partly made up for with receipts from elsewhere.

Yes, so a mixed bag but we have to take the two big positives - hopefully the £250.2m almost agreed and the increase for repayments betwen 75-84p/£.

So I still feel we are heading towards an overall return from our JLs of at least 86p/£ now and if all really went well of up to over 99%. But that is obviously looking at the best scenarios.

You may not agree, and that would be fair comment, beacause it is as usual made up of fact, hoped for returns, guestimates into the future and no big losses on our 10 large loans etc.

But anyway stay positive,

And as usual,

God Bless,

Gordon 45

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