We'll get our money back

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2008-11-13 (All day)

HOSPITAL bosses who have £7.5m – mostly charitable donations – frozen as part of the Icelandic cash crisis say they are confident they will get their money back eventually.

Manchester’s Christie hospital is now registered as a creditor of the Icelandic bank Kaupthing Singer and Friedlander with Ernst and Young, who are managing the institution’s bankruptcy.

And managers of the internationally-renowned cancer unit are also set to submit more evidence to the UK’s Financial Services Compensation Scheme (FSCS) in the hope they will be able to help in the recovery of their cash – most of it which was made up of charity donations from the public.

Christie chiefs say they are confident they will be able to recover the money, but in the meantime it is business as usual and they are pushing ahead with plans to expand, with a new research centre and two new satellite treatment units in Oldham and Salford.

A spokesman for The Christie said: "We are continuing our dialogue with the Financial Services Compensation Scheme (FSCS) about our claim for compensation. This involves work by our legal advisers in discussion with the FSCS legal team.

"In addition to this we have registered as a creditor with the Kaupthing Singer and Friedlander bank’s administrators, Ernst and Young, to confirm our claim for the return of our money.

"We are very grateful for the continued support from everyone, especially our fundraisers. These processes take some time, which can be frustrating when we are all keen to move forward, knowing we will have these funds available.

"It is business as usual for The Christie as we continue to treat patients, raise funds and progress with plans to build our new £17million radiotherapy centres in Oldham and Salford and £35million patient treatment centre on our site."

The hospital invested £7.5m of its £40m savings with the Icelandic bank Kaupthing, Singer and Friedlander in May and July this year and is now unable to withdraw the funds.

As well as placing all new funds with the Treasury, the hospital is also moving the remainder of its savings out of HBOS, Barclays and Bank of Ireland and into a secure government account to safeguard its money.

The Museum of Science and Industry (MOSI) was also hit by the failure of Kaupthing, Singer and Friedlander bank – to the cost of £900,000.

The University of Manchester University and Manchester Met also have £15m invested in Heritable Bank, a British subsidiary of a failed the Icelandic bank.