Very Few Thoughts on the SL's '6 Monthly Report of 9.1.2019

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Posted: Thu, 14/02/2019 - 23:50

Very Few Thoughts on the SL’s ‘6 Monthly’ Progress Report (9.1.2019).

Amongst the flurry of activity on the Site I now post my few thoughts on the latest Report. I did a draft on my thoughts on the 12th, thought I would give it a couple of days, revise and then upload on the DAG. Have read all the data since then including ianw and Knife Edge along with Anrigaut. I have not changed much and my views are in line with most of you. I did not know where to start, as another ‘false dawn’ has come and gone. Just when we thought we were ‘there’ along came the scenario of the ‘Destruction of pre-liquidation data’. As our SL went back to Court to get permission to destroy the pre-liquidation data, in order to avoid considerable expense to PwC and therefore us. Would have thought that would have been thought about, before it caused more delays.

And then, what can we say - out of ‘the woodwork’ comes another delay that needs resolving, the receiving of ‘several freezing orders’ in respect of former KSFIOM customer accounts on which the SL has received ‘no proof of debt’. Meaning that until they are resolved the SL cannot quantify the final amount available for distribution to unsecured creditors. SL says the amount ‘is significant to the amount available for distribution’. On page 14 of the Report under section 9 ‘Creditors’, under 9.2 it appears the potential claims under ‘freezing orders’ that are in place amounts to £0.8m. And just to add insult to injury - on page 15 under Section 10 - ‘Costs and operational issues’ sub section 10.6 - ‘estimated future costs’ we are then informed ‘Future liquidation costs will be determined prior to the payment of interest and the finalisation of the liquidation’. This may give ianw and perhaps Knife Edge the answer to the question regarding any future costs or not. Just when we thought all costs had now been paid.

I would have thought after the various updates giving us information about deadlines to put in ‘proof of claims’ by 5th September 2018, with clear information of the process that any claims would either be approved, or if rejected would then go through the appeals system prior to 16th November, meaning that would be the end of the process available to ‘would be claimants’ and that if any ‘would be claimants’ did not go through that process, either because they did not meet the deadlines or their claim was rejected, or they did not put in a claim that they had no more recourse open to them regarding a claim in the Liquidation. But obviously now, my thoughts at least were wrong. It would appear these ‘freezing orders’ relate to accounts that no proof of debt was ever received by the SL. So, it would be helpful if the SL was to clarify more clearly what actually happened regarding these ‘freezing orders’ and how they could come about. It would appear that Knife Edge has taken up this on our behalf.

I do not think there is any point in going over matters in the Report that I have written about in the past, or data that is now irrelevant to us, so other than what I have already discussed above, I now mention a few other points below. If I have missed points or disregarded some points that are important to others I apologise.

  1. Introduction - Page 6/7

1.3.4- ‘Freezing orders’, discussed above.
1.4.1 - Cut off dates for creditors to prove their debts fixed by IOMHCourt - 16th November 2018. Mentioned above.
1.5.1 - Next Report will cover 6 months to 9.7.2019, or the completion of the Liquidation if earlier. Meantime the SL will continue to post updates on the website on a regular basis and when there are any material developments.

  1. Report on Liquidation from 10th July 2018 - 9th Jan 2019 - Page 10

3. 2.1 - £18.5m Cash in Hand at 9.1.2019

  1. Creditors - Page 14

9.9.2 - Re Unresolved & Unclaimed. The data relating to the £2.5m Unresolved and £1.5m Unclaimed, shown on the last Report under this heading has now been taken out. Presumably all resolved.
9.9.2 - At the final date of proving, claims to the value of £900.6m have been admitted. The £0.8m covering ‘freezing orders’ discussed above is also shown under this heading.

10.Costs and Operational Issues - Page 14/15

10.6 - Estimated Future Costs - Costs up to 9.1.2019 are £26.5m + VAT. But as said above future liquidation costs will be determined prior to the payment of interest and the finalisation of the liquidation.

The above are the only comments I felt worth making. Presumably lawyers and perhaps the Courts are now involved again, so who knows now when this Liquidation will be finalised.

Take care,

And God Bless

Gordon 45

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