Update from KSFIOM Liquidators 10 May 10

Category: Newsflash


Cash position and loan book summaries 30 April 2010; claim against KSFUK; next distribution


Cash position and loan book summaries 30 April 2010 - see here

We have purchased currency options to hedge certain of the future foreign currency loan receipts. Due to the weakening of sterling during April, options purchased to hedge Euro receipts were 'in the money' at 30 April 2010, protecting the value of the company's future receipts to the extent of approximately £1.2million.

Claim against KSFUK

Negotiations continue with the Administrators of KSFUK regarding the agreement of our claim. The amount of £205million has currently been agreed, however, we are in discussions in order to agree a higher amount.

The Administrators of KSFUK have so far paid us three distributions totalling £71,750,000, being 35% of the agreed portion of our claim. They have also indicated their intention to pay a fourth distribution in July 2010 of not less than 5%. If we are able to agree our claim at a higher amount, we will receive a catch up payment for the balance.

Next distribution

After 31 May, funds which we have had to retain following the sale of shares last year become unrestricted. In early June, we will review the cash position with a view to declaring a third distribution for unsecured creditors, to be paid in early July. We anticipate the distribution will be at least 10%, however the exact amount will depend upon the level of cash receipts during the intervening period.

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