DST Parental Guarantee Statement 24 Jan 10

Category: DAG Public News

24th January 2010

 


DST are aware that the claim by PwC under the Parental Guarantee issued by Kaupthing hf ("PG") has been rejected, apparently because the Kaupthing Hf winding-up committee ("WUC") do not view it as binding on Kaupthing Hf. PwC's statement to this effect can be found here: http://www.kaupthingsingers.co.uk/Pages/4174. DST is not aware of the reason why the WUC have said that the PG is not binding on the bank.

 


DST is monitoring the situation closely. If the outcome of the challenge process and any litigation in Iceland surrounding this matter (as described by PwC) remains that the PG is in fact found not to be binding, then it clearly has major repercussions for all creditors of KSFIOM. Creditors who relied on statements regarding the PG made by representatives of KSFIOM both directly to creditors, and also the way it was referred to in literature, will justifiably feel misled and mistreated.

DST's representatives on the Committee of Inspection are also following this matter very closely and are going to attend an emergency meeting of the Committee of Inspection that it is hoped can be scheduled tomorrow (Monday 25 January).

As a separate matter, DST are also aware that large numbers of depositors have had their individual claims rejected and are liaising with DAG's Icelandic lawyer as to representing objections to this at the creditors' meeting on 29 January.

Depositors (please login) can find a thread with more detailed discussion of the PG issue here:

http://www.ksfiomdag.com/index.php?option=com_fireboard&Itemid=90&func=view&catid=40&id=600

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