Thoughts on E&Y (KSFUK) Progress Report dated 7.4.13

  • Gordon 45
  • 22/10/08 n/a (free)
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Posted: Mon, 06/05/2013 - 13:21

Hi Folks,

The E&Y (KSFUK) '6 monthly' Progress Report is now out. Attached is my thoughts on the Report and how it might affect us.
· As said in my very intiial post, the good news might be that E&Y have retained their current lower and higher estimated outcomes of between 84% - 86.5% for non preferential creditors(us).
· They have reached agreement in Principle concerning the balance of £185,121,499 that E&Y say is owed back by Kaupthing hf – no details however.
· And they hope to pay a further dividend after the one in June this year by 31.12.2013.
· Regarding the June payout to our JLs, E&Y hope to pay out at least 2p/£ in their 10th dividend w/c 23.6.2013.
· Based on their cash balance in the Progress Report as at 7.4.2013 they have £137.161m to hand. 2% of £4.09bn (agreed claims) = £81.816m, add cash held back for unresolved claims would be around £47.323m (my guess). Add both totals together and you get £129.139m. So, I think, the payout will be around the 2p/£ marker, but certainly not much more than that.
· So, if we add the 2p/£ payout = £4.922m to us, that would equate to 0.5438p/£. Add that to the current available payback by our JLs (again my thoughts) of 3.583p/£ and you get 4.1268p/£. To increase this payout by our JLs, we have to add any net increase in returns ex our KSFIOM loan book for April, May and maybe June, if required.
· So we should get between 4.1268p/£ and 5p/£. To achieve 5p/£ we need another £7.9m in net returns from our loan book between April – June.
· So we await the April data from our JLs, as a starting point towards the £7.9m.

As said above my thoughts on the E&Y (KSFUK) Progress Report is attached.

Take care,

Gordon 45

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Good news re KSFUK 10th dividend

  • anrigaut
  • 19/10/08 30/10/09
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  • Wed, 22/05/2013 - 14:40

KSF-UK (E&Y) have just announced that their 10th dividend will be 3p/£, to be paid on 6th June.

That's more than the minimum of 2p/£ previously announced and so a bit more than expected towards the cash available for our JLs to pay out our next dividend, expected before the end of June.

http://www.kaupthingsingers.co.uk/


Big dinghy

  • vikingvictim
  • 11/10/08 31/05/09
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  • Mon, 06/05/2013 - 20:56

so apparently £362 by capital of private banking loans oustanding as of 7th April. 53% of this is against yachts. However, it is also stated that they have managed to exit 25 of 26 positions as of 7th April. So, If I understand this correctly, there is one yacht loan left with a value of almost £192m!


Accurate assessment

  • uptight61
  • 14/10/08 n/a (free)
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  • Sat, 11/05/2013 - 19:56

Thanks for the above, Gordon. Turns out was a very accurate assessment based on Mike Simpson's May 10th update. Great news that we'll be getting back at least 4p in the pound next month - lets hope that returns are sufficient in May/June to bump it up to 5p (5.7m pounds more?). Good to see that 90.5% of the loan book has been repaid at this point in time. Credit must go to the loan officers at Singer and Friedlander (Isle of Man) for doing a good job! Any news/thoughts on the celebration/party idea that has been banded about the last few months?


To uptight 61

  • Gordon 45
  • 22/10/08 n/a (free)
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  • Thu, 16/05/2013 - 08:43

Hi There uptight 61,

Thanks for your comments. I'm just back from holiday but kicked in last Saturday to get the JLs monthly data. Based on another £2.2m plus the £4.922m due from E&Y (KSFUK) in early June I think we have around 4.3 - 4.4p/£ available. And if you discount my higher thoughts on costs (£1.7m) I think the JLs will have around 4.5p/£ to pay out. That is not including anything back in May or first half of June, so 4.5 - 5p/£ is still achievable - I think.

I'll do my monthly update and see what I get then, hope it is in line with the above.

Take care,

Gordon 45


more than 4p likely?

  • sambururob
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  • Thu, 16/05/2013 - 10:07

In previous payments when they use the phrase "no less than" a certain figure it has always been exactly and no more than that figure. Do you think the JL's will include every bit of cash they have or just stick to that which they have announced? Needless to say, we are from the "pay every scrap you can muster" school of thought!!
Thanks for your accurate prognosis (again!) Gordon.
Rob and Wendy


To samburob

  • Gordon 45
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  • Thu, 16/05/2013 - 15:01

Hi Folks,

I've said above to 'uptight 61' that I think there could be around 4.5p/£ available once we receive the £4.922m from E&Y (KSFUK) and that does not include any net returns from KSFIOM in May/first half of June. And as said if you discount my 'extra' £1.7m for costs there is 4.5p/£ available - I think.

The JLs have said to me when asked that they will not wait to reach 5p/£ to pay out a dividend, and we have now seen E&Y (KSFUK) paying out 3p, and I think 2p come 3.6.2013. So our JLs have now seen their counterparts paying out less than 5p/£. And I do think after our next dividend we will have to wait at least a year for the following dividend, if not longer.

So, I think they will pay out the max they can, come late June and I think it will be 4.5p/£ or above. Once I do my monthly update based on the April data I will know better if what I said to 'uptight 61' and now yourselves is as accurate as I can make it. But will inform you all of my thoughts when I finalise the info - not started yet, just back from my hols and trying to catch up.

Take care,

Gordon 45


Hi Sambururob, Like Gordon

  • anrigaut
  • 19/10/08 30/10/09
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  • Fri, 17/05/2013 - 19:57

Hi Sambururob,

Like Gordon 45, I firmly believe the JLs will pay out as much as they feel they reasonably can, while keeping back enough to cover future expenses and any still unsettled claims. They are well aware that it will be some time before a further dividend can be paid.

In fact, your claim that they have never paid more than the 'at least' amount announced is incorrect; they have usually (if not always) paid slightly more (eg in June 2012, 'at least 7.6 p/£' announced; 7.8p/£ paid). You may be confusing our dividends with those of KSFUK, which I think may well always have been the minimum announced (though I haven't checked).

Anyway, we shall know soon enough. The KSFUK amount should be announced in the coming week and ours in the coming month.

Fingers crossed ...