DST Update for individual claimants newly rejected by Kaupthing WUC 13 May 2010

Category: DAG Public News

URGENT: We strongly recommend that any depositors who lodged claims to the Kaupthing Winding-up Committee (“WUC”) and who have received a rejection letter from the WUC in the last few weeks should object to that rejection before the deadline of 18 May, or the date given in their rejection letter. This can be done by e-mail (see details in your rejection letter).

Instructions and a form are available on the Khf website here.

This advice applies to anyone whose claim has only recently been rejected, regardless of whether you used the services of our Icelandic lawyers to make your claim and/or asked for your name to be added to the list of objections lodged by them on our behalf in January. For cost reasons, we will not be requesting the lawyers to lodge the objections on our behalf this time.

You may however wish to use the text below when giving your “reasons for objection”, which has been supplied by our Icelandic lawyers and was the basis on which they objected to the rejection of depositors’ claims in a meeting with the WUC, where they appeared on behalf of depositors who were rejected in the first “batch” of rejections. Please note this text has been adapted for inclusion in an objection email and for that reason is not precisely the same as the text that our lawyers lodged.

The cases of the first “batch”, who were rejected before the first Creditor’s Meeting on 29th January and for which objections were lodged at that meeting have been referred to court for decision following intervention by our Icelandic lawyers, and they will be decided on the basis of a specimen case.

The outcome of that specimen case will then apply to all depositors who have claimed and whose claim has been rejected, and who have objected to that rejection.

We furthermore understand that the WUC have agreed that the case will not be decided until the outcome of the PwC case on behalf of KSFIOM has been determined – this has yet to be confirmed by the court, but it is not anticipated that they will cause any problems.

To ensure this can be managed as efficiently managed by us as possible, and coordinated with our Icelandic lawyers when the objections are considered in court, you should also email us at This email address is being protected from spambots. You need JavaScript enabled to view it. to let us know you have objected and also giving the name(s) and claim number(s) of the claimant(s). Please do not attempt to contact our Icelandic lawyers directly as this will only serve to increase our costs.



Reasons for objection (adapted with permission from text used by Icelandic lawyers for first group of objections in January):

Winding-up Committee of Kaupþing banki hf.
Borgartúni 19
105 Reykjavík

Re: Objections to Decisions of the Winding-up Committee of Kaupthing Bank hf.

Claim reference no: [Please insert your number(s)]
Claimholder(s): [Please insert your name(s)]


The Claimholder(s) referred to above hereby object to the decision of the Winding-up Committee to refuse their respective claims, as presented in letter(s) of the Winding-up Committee dated [insert the date(s) of your rejection letter] 2010.
The Claimholder(s) are all depositors of Kaupthing Singer & Friedlander (Isle of Man) Limited ( “KSFIoM”), a wholly owned subsidiary within the Kaupþing bank hf. group, and have lodged priority claims due to deposits the Claimholder(s) had with KSFIoM. In the alternative and on a contingent basis the Claimholder asserted a secondary, unsecured claim for full amounts of their claims, in the rank of claims pursuant to Art. 113 of Act no. 21/1991 on Bankruptcy, etc.
All promotional literature for KSFIoM used in inducing people to make deposits with the KSFIoM referred to a parental guarantee by which it is stated that Kaupthing Bank hf. fully guarantees deposits and with which depositors are guaranteed that their savings are fully secured (the “Parental Guarantee”). Furthermore, all correspondence aimed towards the Claimholder(s) in relation to their deposits referred to the said Parental Guarantee, cf. KSFIoM’s brochure, advertisement and other correspondence promoting the Parental Guarantee which has previously been presented to the Winding-up Committee on behalf of other KSFIOM depositors claiming in relation to the Parental Guarantee. The actual text of the Parental Guarantee was not made available to anyone and so statements such as those referred to in such promotional literature, correspondence and discussions were relied upon by depositors. Therefore, the depositors could reasonably expect their savings to be fully secured by Kaupthing Bank hf. as if the deposits would have been deposited with Kaupthing Bank hf., and have accordingly lodged a direct claim against the Winding-up Committee of Kaupthing Bank hf.

Reservation of Rights

This statement outlines the reasons for the objections made. The Claimholder(s) fully reserve their rights to expand upon the reasons for their objections stated in this statement of objections should this prove necessary, particularly in the event that any court or similar body is asked to resolve any dispute which cannot be resolved by negotiation between the Claimholder and the Winding-up Committee.

Furthermore, the Claimholder(s) fully reserve their rights to develop their position in respect to the decisions of the Winding-up Committee further if this should prove necessary, including by introducing arguments which have not been made in this statement of objections, but which are relevant to the issues which are in dispute, or which may become disputed, between the Claimholder(s) and the Winding-up Committee. To the extent that the Claimholder(s) may wish to object to future decisions made by the Winding-up Committee, the Claimholder also reserves the right to do so.




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