IMPORTANT INFORMATION for depositors: claiming under parental Guarantee

Category: DAG Public News


DST urgently draws your attention to a new posting from the liquidators (below) and on the basis of that posting, given the very limited time available, urges all depositors and other creditors including bondholders who have not yet been fully compensated to submit a claim under the parental guarantee to the winding-up committee  using the online form available here together with a hard copy, to arrive in Reykjavik by midnight on 30 December 2009.  We suggest you read carefully the notes on « How to file a claim ».


It is suggested that the claim should be for any sums not yet recovered including interest up to 8 October 2008 plus interest from 9 October 2008 to the date of this claim at 5% pa (under Manx insolvency law), calculated as best as you can, plus interest at an annual rate of 5% pa up to date of settlement of claim (obviously this last element cannot be quantified).

From KSFIOM site:

« 21 December 2009 Parental Guarantee We have been asked by a number of parties to give guidance to creditors/depositors regarding whether they should be making individual claims on Kaupthing Bank hf in respect of its parental guarantee to Kaupthing Singer and Friedlander (Isle of Man) Limited. As you will appreciate, it is not the joint liquidators' duty to give advice to creditors in relation to the making of claims in that liquidation, particularly since the Joint Liquidators might have a conflict of interest in doing so, since any successful claim by an individual creditor of KSFIOM would reduce the amount received by the Joint Liquidators for the benefit of the creditors of KSFIOM as a whole. Accordingly, if creditors wish to seek such advice then it is open for them to do so at their own cost.

However, in the spirit of being as helpful as we can, we can see no downside to creditors if they wish to make individual claims in respect of the parental guarantee. We would reiterate the statement made in the posting on the website on December 18, that it may well be that individual claims are rejected by the winding up committee of Kaupthing Bank hf, however by making such a claim creditors individual rights are, as a minimum, preserved.

The Joint Liquidators would again emphasise that the above does not represent legal advice, and cannot be relied upon by creditors of KSFIOM, who should take their own advice in relation to any claim that they may wish to bring against Kaupthing Bank hf in their personal capacity.

Mike Simpson 
Joint Liquidator »

links here and here

We apologise for the extreme lateness of this information, due to the delay in PwC communicating their guidance, despite considerable pressure since early November by our CoI members, who - it appears - were not even informed when these postings were made.  The DST and CoI representatives are taking up with PwC its failure to provide depositors with clear and unambiguous advice on the basis of their own legal advice from Iceland, which we have effectively paid for.  Depositors might also like to write to Messrs Spratt and Simpson to express dismay at their inadequate performance.

As a further measure the KSFIOM DAG is contacting the WUC (winding-up committee) in an official capacity in respect of this matter through DAG appointed lawyers Edwin Coe representing listed members, albeit likely that the quantifiable nature of a claim will render the group approach impossible. Additionally we will seeking advice on whether to apply for an extension of time in the circumstances.


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