Thoughts on the Sl's Oct-Dec 2018 Quarterly Report

  • Gordon 45
  • 22/10/08 n/a (free)
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Posted: Mon, 07/01/2019 - 15:02

Hi Folks,

Apologies for the delay in uploading my thoughts on the SL'S Oct-Dec 2018 Quarterly Report. I took a few days to finalise my thoughts before sharing it with yourselves. As I wanted to take time and ensure my thoughts are impartial as always.

My latest thoughts after taking into account the SL’s Oct/Dec 2018 figures - you may not agree with me.

Once again a very short update. Although in contrast to the SL’s July/Sept Report this Report contains a lot of interesting and important information. I am extremely disappointed in relation to the information/non information - to put it mildly - but I will concentrate on the given data.

  1. Firstly, the monetary facts. Cash balances have decreased by Approx £899,000 during the quarter. Income £4,000, Liquidation Expenses £820,000, Legal Expenses £68,000 and Other Expenses £15,000. When you add and subtract the figures from the previous update there is a slight difference of £340, probably due to rounding up and down.

2.As I said in my last update and on other previous updates it appeared that PwC had not been paid ‘time costs’ from 1.4.2017 - up until now + costs to cover to the end of the Liquidation, and the back payment due, I think, has been a major part of why there is this substantial payment now of £820,000. To my mind it is really disappointing that there has been this delay in paying the back payments due to PwC before now.

  1. What I find hard to accept in the current update of finances is the omission of any word regarding the retained £2.5m ‘Unresolved’ and £1.5m ‘Unclaimed. This money has been retained to cover any back payments due to the these claimants. I would have thought based on the SL’s updates of 3.7.2018, 20.7.2018, 5.10.2018 and other updates on High Court Hearing on 30.10.2018 and the final cut off date of 16.11.2018 that matters regarding this £4m would have been resolved. If so I would have expected an update on any monies returned to the SL from these sources. But, either these matters have not yet been finalised or they have, either way I would have thought that the SL should have given us information as to where we were regarding this cash - our last source of any cash available to help enhance our final dividend. I find it inconceivable that none of this money is now available to the SL unless the Deemster has in some way decreed that it has still to be retained at present or the intricacies involved in releasing this cash have not yet been finalised.

4.Another very disappointing aspect is the information released by the SL with regard to his application to the Court for permission to destroy all pre liquidation data, as in his view it is no longer required - fair enough - but, he then says as the cost of preserving this data would be significant and ‘so impacts the calculation of the final distribution’. I find it unbelievable at this very late stage that this has come up - thus delaying once again our final payment. Surely he must have realised the cost before now.

5.I also felt there was a major delay by the SL in going to the Courts to finalise the way he should proceed to finalise the Liquidation. The SL mentions this in his January 2018 update but does not put forward his case until July 2018. He may have had good reason for the delay but once again information to let us know why, would have been helpful and prevented us from expecting an earlier resolution and finalisation of the Liquidation.

In conclusion, I have asked the SL questions on the above throughout 2018, and as late as 7.10.2018 - to no avail. I will again ask him if he is willing to update either all of us or myself on the above areas of concern (mine anyway) and will inform you all if I am fortunate enough to be given any answers.

So, we await answers from another unexpected Court Hearing before the Final Dividend can be paid out. Once we know the Dividend we can perhaps guesstimate the total cash available to pay us out and we can then attempt to see what may have come back from the £4m (‘Unresolved’ & ‘Unclaimed’ - if anything) or perhaps the SL will supply us with the final net cash figure utilised to pay out this Final Dividend.

But, the current figure at present is £18,563,335.76, less £4m (I think for ‘Unresolved’/’Unclaimed’) = £14,563,335.76, less £3.5m (for Contractual/Non Contractual Interest), leaving a net balance of £11,063,335.76 divide by £904m = 1.2238p/£ (I think).

If I am wrong in my thoughts I will be the first to apologise to the SL for my errors. And if what I have said annoys or upsets any of you, I apologise to you as these are my own thoughts only.

As always take care.

And God Bless,

Gordon 45

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Re Unclaimed/unresolved

  • anrigaut
  • 19/10/08 30/10/09
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  • Mon, 07/01/2019 - 16:46

Thanks as ever Gordon for your thoughts.

It is of course somewhat disappointing that the Court has yet to rule on this final request from the Liquidator, who could no doubt have applied earlier. But that apart, on this occasion I feel less disappointed than you over this update, minimal as it is.

It was clearly stated in an update by the Liquidator on 20 July 2018 that "... creditors who have not yet proved their debts need to take urgent steps to do so, because if their proofs of debt are not admitted by 16 November 2018 they will be forever excluded from sharing in the dividends paid to creditors from the assets of KSFIOM recovered by the Liquidator.” As this date has now passed, it seems to me evident that the £4m reserved for unresolved or unclaimed payments must now be considered as available for distribution. There was of course nothing to be returned to the Liquidator as this £4m was always included in the cash at the bank which now stands at about £18.6m. It seems to me that provided the Court agrees to the destruction of the pre-liquidation data, the full £18.5+m, plus any reclaimed VAT (hopefully not too delayed?), should surely be available for distribution. Or am I missing something ?

On a positive note, it is good to learn that all legal fees and liquidation expenses to the end of the liquidation have now been paid in advance and the Liquidator assures me that he is ready to move quickly once he has the decision of the Court.

So I remain hopeful of a speedy resolution.


To Anrigaut re Unclaimed,Unresolved

  • Gordon 45
  • 22/10/08 n/a (free)
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  • Mon, 07/01/2019 - 20:01

Hi There Anrigaut,

Thanks for your response. And of course you are right in that the £4m is included in the cash total. But the SL - if all £4m has become available as of 16.11.2018, then surely he should have said that in the Quarterly Update, so that everyone would know that the cash total of £18.5m+ was available for the last dividend bar the £3.5m for Contractual/Non Contractual interest.

I just think he should have made that clear, if that was the case, as we do not know officially if any of the 'Unresolved' did win their case and we do not know if anyone came forward at then end to claim any of the £1.5m held in reserve for those 'Unclaimed' claims.

But as you say, let's get the this final Court decision past with, in order that the final dividend can be paid out, and we can put this horrendous situation finally behind us.

Yours,

Gordon 45.


Endgame?

  • golightly
  • 14/10/08 28/08/09
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  • Tue, 08/01/2019 - 11:28

Good morning Gordon and Anrigaut,
Happy New Year.
Thanks for the explenation of the current position.
Hopefully we are nearing the end of this sorry saga. With your knowledge and experience of the proceedings since 2008, what is your guestimate of time to the end?
Yours sincerely,
Golightly.


Re endgame

  • anrigaut
  • 19/10/08 30/10/09
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  • Sat, 12/01/2019 - 10:00

Hi golightly,

"Time to the end?" - your guess is as good as mine!

But I've just spotted on the IOM Court website that the hearing is scheduled for Mon 14 Jan: https://www.courts.im/media/1989/chancery.pdf

Guess it may then be a few days before the Deemster announces his decision and then maybe a few more before the Liquidator announces the date & amount of the final distribution (unless he still has to wait for the VAT refund he referred to - I don't know whether or not that has been received). But on balance I would guess (and I'm only guessing) probably before the end of this month - and maybe sooner.


endgame

  • golightly
  • 14/10/08 28/08/09
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  • Mon, 14/01/2019 - 08:53

Thanks Anrigaut.
Regards,
Golightly.


endgame - update

  • anrigaut
  • 19/10/08 30/10/09
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  • Mon, 14/01/2019 - 21:18

Following my enquiry, Mike Simpson has today informed me that he expects to be able to make an announcement within the next two weeks.

Fingers crossed!


Nothing happens fast

  • thesunnysouth
  • 10/10/08 31/05/09
  • unspecified
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  • Mon, 21/01/2019 - 07:43

Anrigaut/Gordon 45. Thank you both for the updates and I continue to update my mum who heads nearer 90 than 80 and she too would like to hear the end of this saga. Every time there is an end game there seems a reason why it should continue and of course add up the legal and liquidator fees.

However we live in hope although it is now a week since the court hearing and yet again we still await the thoughts of the legal system of the IoM.


Re endgame

  • Gordon 45
  • 22/10/08 n/a (free)
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  • Sun, 13/01/2019 - 14:16

Anrigaut, many thanks for this update.

Gordon 45