Thoughts on the E&Y (KSFUK) Progress Report dated 7.10.2012

  • Gordon 45
  • 22/10/08 n/a (free)
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Posted: Mon, 05/11/2012 - 23:54

Hi Folks,

Attached are my thoughts on the E&Y (KSFUK) Progress Report, dated 7.10.2012.

This report contains a number of important points in relation to ourselves.

And to me, at least, this report makes a lot of good reading for us and details how E&Y can continue to make returns (through their loan books and Kaupthing hf), to our JLs and therefore help us get up to that 100% recovery that we want.

I agree with Brabander, that returns from E&Y can go higher, he thinks at least 85%, I go slightly higher, and using two different methods I feel we can get 86.5% or even up to 88.75% - hope we are both right.

I have also said, based on the return of 3% from E&Y on 31.10.2012, that I will rejig my thoughts on future returns from them (still projecting ‘6 monthly’ returns) and show another 3% by June 2013, a second 3% by December 2013 and a final 2% by June 2014. Thus giving us 84% back.

I also said to Brabander that I think I will raise our liquidation costs back to £25m (in my spreadsheet), that I had before, as I am not sure the JLs can hold costs to their predicted estimate of £23.3m. That would mean raising costs on my spreadsheet by £1.7m. Especially if our JLs incur costs investigating how to go about paying interest back to all of us if we reach the magic 100% return.

And I know costs in comparison to E&Y (KSFUK) are pro rata much, much higher, but as I said to Cottesmore, costs are important and look high, but other things like ‘write offs’- E&Y way, way higher in comparison, estimated overall returns to us from the JLs in comparison to E&Y are far higher, unresolved/unclaimed we are far lower, so there is a bigger picture to contemplate- not just Liquidation or Administration costs.

So, I feel I should raise the estimated costs that I feel happier to use, and it will obviously partially offset the 2% gain from E & Y, but better to do it at present when we have a larger gain from E&Y, than waiting until it would have a negative overall impact on our returns. Some or all of you may feel what I am saying is contentious, and if you are not happy with my thoughts, you are correct to have that view, but I feel once I update my spreadsheet to include all of the pertinent facts contained in the E&Y Progress Report, my thoughts on our liquidation costs and the October figures from the JLs (once they are issued) then from my viewpoint, we can see as accurate a picture as possible of how our eventual returns look at this point in time.

My apologies to all of you, who do not share my thoughts on this.

As always,

Take care and god bless,

Gordon 45

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Oct update available

  • anrigaut
  • 19/10/08 30/10/09
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  • Mon, 12/11/2012 - 13:01

Unable to post in shout box (which vanishes when I log in!), so posting here to say the Oct update from Simpson is now on available:

A better month for us. Cash balances increased by approximately £14.6 million. This includes £7.4m from KSFUK (9th dividend) and £6.2m from the loan book (2 loans redeemed in full).

Thanks Anrigaut

  • sambururob
  • 10/10/08 n/a (free)
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  • Tue, 13/11/2012 - 10:31

Well spotted - and "not bad" news as well!!
Rob & Wendy


  • sunny1
  • 16/10/08 30/05/14
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  • Sat, 10/11/2012 - 11:22

Good to hear from you Gordon 45. Thank you yet again.


  • Brabander
  • 15/10/08 31/05/09
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  • Tue, 06/11/2012 - 12:06

Very detailed "thoughts". Well done!
No doubt a lot of work went into that document.
I think everybody agrees that assumptions are just that, assumptions.
However it is very useful to have somebody interpret and translate the liquidators' reports in a layman's language so that the many DAG members who do not have the expertise and PATIENCE to do so can get key bits of information.

To those who do not agree with Gordon's assumptions I say, please try to do better yourself.