SoA letter to Policyholders
Royal Skandia Affidavit
Statement of liquidator's recoverable assets
Details of Early Payment Scheme
Impact of charges
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 14
The Joint Liquidators’ published their latest report on the progress of the liquidation of Kaupthing Singer & Friedlander (Isle of Man) on 17 February 2012. The main points of the report are:
The estimated final return has been revised to between 95.4 – 98.6 pence in the pound
83.2 pence in the pound dividends paid to creditors so far
All outstanding loans are due to be repaid by March 2014
An interim dividend of at least 6 pence in the pound will be paid during 2012 – no date was given for this payment
A further formal report will be published in approximately six months
In 2012 the Joint Liquidators will be concentrating on:
Continuing to oversee the collection of the loan book
Pursuing a claim against KHF under the parental guarantee
Declaration and payment of subsequent dividends when funds are available
Considering further actions against parties identified by the ongoing investigation
Consulting with the Committee
Reporting important information to creditors via website updates
The full report can be accessed through the following link: http://www.kaupthingsingers.co.im/media/6671/ksf_creditors_report_9_january_2012.pdf
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 13
Published November 8 2011
Sixth Distribution
The Joint Liquidators announced on 8 November 2011 that a sixth distribution of 9.6 pence in the £ will be paid on 11 November 2011. This will bring the total distributions to date to 83.2 pence in the £.
Royal Skandia will credit client accounts on Wednesday 16 November 2011, following receipt of funds from the Joint Liquidators.
The amount will be calculated on the value of the deposit with KSF at the time the Bank failed, less any deferred interest (Manx liquidation laws only allow repayment of 5% interest until 100% of each client’s account is repaid).
Whilst quarterly contractual administration charges still apply to your Bond we will continue to rebate fees on the undistributed portion of your investment until such time as the liquidation process is complete.
Unless any major developments occur we will write to affected policyholders with a further update at the end of this year. However in the meantime we would strongly recommend that, if possible, you regularly monitor the liquidators website http://www.kaupthingsingers.co.uk/Pages/4169 as well as www.skandiainternational.com for any further updates or contact our Helpdesk directly on +44 (0)1624 655465 if you require specific assistance.
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 12
Published October 13 2011
Next dividend
Attached below is a copy of the notice for the next dividend which has been published in the press and sent to all known creditors who have not yet submitted a claim.
Notice of Sixth Dividend
In accordance with the advertisement, creditors who have not yet submitted a Proof of Debt form are required to return the completed form to the Joint Liquidators prior to 21 October 2011 in order to be included in the sixth dividend.
For claimants with an admitted claim directly in the liquidation, if you wish to change the bank account details for payment of your dividends please contact the bank prior to 28 October 2011. Any request for a change in payment details after this date may result in a delay to the payment of the sixth dividend to you. The Joint Liquidators will only change a claimant's payment details upon receipt of an original, signed document - photocopied, faxed or scanned documents will not be accepted.
As previously advised, dividend levels can only be determined once cash has been received. We will distribute as much cash as is available at the point of declaration, which based on cash currently in hand will be not less than 9.5p in the £.
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 11
The Joint Liquidators (JLs) published their most recent report on the KSF website on Friday 12 August 2011. The JLs have given an indication of when the next payment will be and also a revised final outcome -
The JLs are focused on returning funds to creditors as soon as possible and it is hoped that sufficient further funds will become available to enable them to pay further interim dividends in the region of 8p to creditors towards the end of 2011.
For indicative purposes only, it is estimated that the dividend range may be between 93.0p in the £ and 98.1p in the £. This has not allowed for any return in respect of the parental guarantee. Clearly any recovery from this source will impact the final dividend to creditors. The estimate also does not allow for any potential recoveries arising out of the ongoing investigation into the Company’s affairs.
A copy of the full report can be found here
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 10
Update published June 13 2011. The Joint Liquidators of KSF IOM have today published the following announcement on their website:
"Parental Guarantee
We have been advised by the Supreme Court of Iceland that our appeal has been upheld and, therefore, the validity of the parental guarantee has been proven. The decision of the Supreme Court is final and cannot be appealed.
This is clearly a significant victory and is a major step forward in our attempt to recover money from the parent group for the benefit of creditors.
As you are aware, Kaupthing Bank hf is seriously insolvent, so this decision does not mean that the value of our claim is going to be paid in full, or that creditors of KSFIOM are guaranteed to be repaid in full. Indeed the Winding Up Committee has not yet given any indication as to the likely recovery and it may be some time before they are able to do so.
Those creditors of Kaupthing Bank hf who objected to the validity of the KSFIOM claim may also seek to challenge the value of the claim, so it may be some time before the value of our claim is finally agreed.
The link to the site is http://www.kaupthingsingers.co.im/Pages/2011/June/13June2011.asp"
Attached is an English translation of the judgment of the Supreme Court of Iceland in respect of the parental guarantee, which affirms the right of KSFIOM to make a general claim against Khf.
Supreme Court Judgment - English translation
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 9
Royal Skandia received notification from the Joint Liquidators of KSFIOM that a fourth distribution of 12.5% was paid on 8 April 2011. This brought the total distributions to date to 73.6%. In their February Report the Liquidators have said that they estimate an 18% payout in 2011 and the final return is now estimated at between 91.4 – 97.7%. For further details, please review the full report at the following link - http://www.kaupthingsingers.co.im/Pages/2011/February/11February2011.asp
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 8
You may have seen press coverage recently suggesting individual policyholders are able to make individual claims:
http://www.moneymarketing.co.uk/regulation/ex-watchdog-challenges-manx-ksf-iom-bond-move/1022142.article
Since the beginning of this situation, Royal Skandia has done all in its power to attempt to bring about the best possible resolution for customers and is taking additional legal advice relating to these new suggestions of individual action.
Our initial legal advice is that any individual claims will be rejected. However to ensure that your interests have been protected Royal Skandia has registered a claim on your behalf with the Compensation Scheme Manager. You do not have to register a separate claim at this point. We are taking further legal advice and will keep you informed of any developments.
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 7
Royal Skandia has received notification from the Joint Liquidators of KSFIOM that a third distribution of 11.1% will be paid on 9 July 2010. This will bring the total distributions to date to 51.1%.
The payments, when received by Royal Skandia, will be credited to affected Bonds on 14 July, backdated to 9 July, in a similar way to the previous dividends.
Whilst quarterly contractual administration charges still apply to your Bond we will continue to rebate fees on the undistributed portion of your investment until such time as the liquidation process is complete.
Unless any major developments occur we will write to affected policyholders with a further update with their 2010 year end valuation. However in the meantime we would strongly recommend that, if possible, you regularly monitor the liquidators website http://www.kaupthingsingers.co.uk/Pages/4169 as well as www.RoyalSkandia.com for any further updates or contact our Helpdesk directly on +44 (0)1624 655465 if you require specific assistance.
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 6
Royal Skandia has provided regular online updates throughout the year regarding the liquidation of Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM), however we would like to take this opportunity to update all affected Policyholders in writing about recent events concerning KSFIOM and explain their impact on affected investments following the liquidation of KSFIOM on 27 May 2009.
Following liquidation, a Creditors Committee was established to work with the liquidator to facilitate the payment of distributions to creditors. Royal Skandia is an elected member of that body and is committed to ensuring you receive the best possible return via the liquidation process.
The first distribution of 24.8% of policyholders' original investment amounts was made by the liquidator on 4 September 2009. Typically, all customers had previously received payments under the Isle of Man Government's Early Payment Schemes of £10,000 (€12,630 or $17,230) per account, or the full investment amount if it was less than £10,000 (€12,630 or $17,230). Payments under the first distribution were therefore made to policyholder accounts after deduction of these advances.
On 8 December 2009 the liquidator paid out a second dividend of 15.2% and this payment was credited to affected Bonds in a similar way to the first dividend.
Subsequently, the liquidator has released an update on the return to creditors where he estimates an ultimate distribution of between 82.88% and 93.76% paid out over the next eight years. The liquidator has also provided a statement regarding claims on Kaupthing Bank hf in respect of its parental guarantee to KSFIOM. Following legal advice Royal Skandia has registered a claim, although our considered opinion, again based upon legal counsel, is that such claims are unlikely to succeed.
We would also like to explain that, when the September distribution was made, the amount received by Royal Skandia was less than expected. When we questioned this we were advised that this was due to 'deferred interest' and, under liquidation law, because accrued interest has not been paid, the interest element is ranked differently in the order of preference when repaying creditors. Unapplied interest earned at a rate in excess of 5.00% is deferred until all other creditors have been paid in full. This means that the liquidator can only assume a maximum interest rate of 5.00% in calculating dividends so, if your linked deposit was earning 6.82%, 1.82% of that interest will not be payable until all other creditors have been paid.
For example:
Original deposit £100,000
Accrued interest at 6.82% £ 6,820
Value of deposit £106,820
Value of dividend declaration £105,000
In this example you can see that £1,820 is deferred and would not be repayable until all other creditors have been paid.
Royal Skandia has challenged this but has been advised by the liquidator that we can do nothing about it. Therefore whilst the first distribution we credited to your account was based on the full amount, the second and subsequent distributions reflect 'deferred interest' and take any overpayments from the first distribution into account.
Finally, we can confirm that whilst quarterly contractual administration charges still apply to your Bond we will continue to rebate fees on the undistributed portion of your investment until such time as the liquidation process is complete.
We trust this has now fully updated you and, unless any major developments occur, we intend to write to you again with your 2010 year end valuation and a further update. However in the meantime we would strongly recommend that, if possible, you regularly monitor the liquidator's website http://www.kaupthingsingers.co.im/ as well as www.royalskandia.com for any further updates or contact our Helpdesk directly on +44 (0)1624 655465 if you require specific assistance.
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 5
Further to our previous update the liquidator, via their website, has provided a statement regarding claims on Kaupthing Bank hf in respect of its parental guarantee to KSFIOM. We are currently taking legal advice as to whether Royal Skandia should submit a claim and as soon as we are able we will publish our decision online.
In the meantime, Royal Skandia recommends that affected policyholders regularly monitor the liquidators website http://www.kaupthingsingers.co.uk/Pages/4169 as well as www.RoyalSkandia.com for further updates.
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 4
In our previous update we confirmed that the KSFIOM liquidator was close to releasing a more accurate indication of returns. This information has now been posted on the liquidator's website (http://www.kaupthingsingers.co.uk/Pages/4166) and states that, currently, he estimates an ultimate distribution of between 82.88% and 93.76% paid out over the next eight years.
We recommend that you continue to monitor both the regulator’s website and our own for further updates.
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 3
Further to our previous communications regarding investments via Royal Skandia into Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM), we can confirm that on 8 December 2009 the liquidator of KSFIOM paid out a second dividend to creditors amounting to 15.2%. This payment has been received by Royal Skandia and we are now in the process of allocating payments to each affected bond.
From Wednesday 16 December 2009 full details of the exact amounts allocated to each affected bond (and consequently the current value of affected Bonds) can be obtained via your financial adviser and/or by contacting Royal Skandia's Portfolio Bond Valuation team here on the Isle of Man.
The liquidator has also indicated that they will soon release an estimate of future distributions. The liquidator intends to post this estimate on their website (www.kaupthingsingers.co.uk/Pages/3989) in the next few days in order that creditors may have a better indication of the final outcome and we would therefore suggest you regularly check the liquidator's site for updates.
Kaupthing Singer & Friedlander (Isle of Man) Limited (KSFIOM) – liquidation process update 2
As part of the KSFIOM liquidation process the liquidator has published an update on their website (www.kaupthingsingers.co.uk/Pages/4160) which will be of interest to all affected Royal Skandia policyholders. Important points to note are as follows:
A meeting of the Committee of Inspection was held on 5 November 2009 and minutes of the meeting will be posted on the liquidator's website as soon as they have been agreed.
The liquidator will shortly be releasing an indicative distribution schedule and updating his estimate of the final outcome.
The liquidator of KSFIOM will be making a claim to the Winding-up Committee of Kaupthing Bank hf on the basis of the parental guarantee for the shortfall in the company's assets.
The liquidator intends to pay a second distribution in December 2009. The amount of dividend is expected to be in the region of 14% and will be confirmed in early December.
Royal Skandia recommends that affected policyholders regularly monitor the liquidator's website, as well as www.royalskandia.com, for further updates.
Kaupthing Singer & Friedlander (Isle of Man) Limited – liquidation process update 1
The formal liquidation process has commenced, and the liquidators have announced that the first distribution will be made on 4 September 2009. The distribution amount has been confirmed at 24.8% of customers’ original investment amounts.
We will credit policyholder transaction accounts with the relevant amounts during the week commencing 7 September, with a value date of 4 September.
Typically, all customers received a payment made under the Early Payment Schemes (EPS) in February and April 2009 of £10,000 (€12,630 or $17,230) per account, or the full investment amount if it was less than £10,000 (€12,630 or $17,230).
Payments will now be made to policyholder accounts after deduction of these advances; for example, if you received £10,000 on an initial balance of £100,000 then the first 10% of the initial distribution will be deducted by the liquidator and reimbursed to the Manx treasury, who funded the EPS. A table illustrating the outcomes of a 24.8% distribution with differing original balances is set out below:
| Balance at 9 October 2008 |
EPS Distributions (% of original balance) |
Current balance, after EPS distributions |
Distribution from liquidator |
Payment credited to policyholder |
| £25,000 |
£10,000 (40%) |
£15,000 |
24.8% |
Nil |
| £50,000 |
£10,000 (20%) |
£40,000 |
24.8% |
£2,400 |
| £100,000 |
£10,000 (10%) |
£90,000 |
24.8% |
£14,800 |
As a guideline, if accounts have a current balance less than £30,300 (€38,300 or $52,250) they will not receive a distribution at this stage.
Clients who have accounts denominated in € or US$ have previously been asked to elect whether they want to maintain their currency balances or convert them to GBP. For those who elected to remain in their original currencies, illustrative distributions would be as follows:
| Balance at 9 October 2008 |
EPS distributions (% of original balance) |
Current balance, after EPS distributions |
Distribution from liquidator |
Payment credited to policyholder |
| $40,000 |
$17,230 (43.1%) |
$22,770 |
24.8% |
Nil |
| $80,000 |
$17,230 (21.5%) |
$62,770 |
24.8% |
$2,610 |
| $100,000 |
$17,230 (17.2%) |
$82,770 |
24.8% |
$7,570 |
| |
|
|
|
|
| €40,000 |
€12,630 (31.6%) |
€27,370 |
24.8% |
Nil |
| €70,000 |
€12,630 (18%) |
€57,370 |
24.8% |
€4,730 |
| €100,000 |
€12,630 (12.6%) |
€87,370 |
24.8% |
€12,170 |
However, if you have any questions on this or any other KSFIOM matter, we would recommend that in the first instance you first refer to the KSFIOM website www.kaupthingsingers.co.uk, or contact our dedicated KSF customer helpdesk at RSKFMCustomerHelpdesk@RoyalSkandia.com or by telephone +44 1624 655465.
Last updated 9 July 2010