New list of questions (post those sent on 11.12.2010, 24.12.2010 & 24.1.2011) - To Mike Simpson & Peter Spratt, Revamped and sent again in March 2011 with some questions taken off due to answers in monthly reports, ‘6 monthly update’ etc and other questions added based on same reports.
KSFIOM
- Re 10 Largest Loans, could you confirm the undernoted or otherwise?
G45 - I think 7 large loans of the original 10 are still to come back in based on;
- £14.402m back in Dec 2010 but due back in 2012
- And £55.215m back in Feb 2011 I think includes 2 of the large loans
Correct, although some have been partly repaid.
1a. Are any of these large loans in difficulties or falling behind with interest payments at this time?
I’m sorry but I’m not able to discuss individual loans.
1b. Is the split of the10 larger loans as follows?
2011 – 4
2012 – 4
2013 – 1
2014 –1 (you did say these loans covered 2011/2014 so presumably this 1 loan in 2014 is or was 1 of the 10)
G45 - I think the distribution is now 4, 4, 1, 1 based on the one big loan back from 2012 of £14.402m and the loan values due for each year as at 31.12.2010
It is now 3,4,2,1 as per the covering email (G45 - this is the new 10 largest loans)
1c. Is the loan/‘set off’ situation involving Elle McPherson & her nominal company one of the 10 larger loans?
No
1d. Can you confirm that the £14.402m returned in Dec 2010 from a loan that was due in 2012 is one of the 10 large loans?
Yes
1e. Would you also be willing to say if the outstanding amount due from the 10 large loans (capital) is the £189.5m (61% of £311m July last year) less the £14.402m = £175.1m? The amount outstanding from the current ten largest loans is roughly £113m. Has Feb returns further changed this total by the repayment of a further 2 loans? Would you inform me of the new total now left for repayment on the 7 of the original 10 large loans? Roughly £90m
1f. But you may have received some capital back from these 7 remaining large loans (from 10), would you let me know if that was the case?
I will report the total value of the ten largest outstanding loans in the monthly reports.
1g. Can I ask again if the loan regarding the aircraft due back in 2013, that you have now repossessed and are trying to sell is one of the 10 large loans? YesAlthough you may not be able/willing to disclose the amount this loan was for/and or the amount outstanding surely you can confirm whether it was one of the 10 large loans?
COSTS
1a.Re the current bank staff levels of 5 f/t & 4 p/t. Can I ask what is the gross annual cost at present for these staff within the liquidation? The ongoing staff salary cost is small and shouldn’t effect your calculations.
1b. Is Aiden Doherty still one of the 9 staff retained? NoAnd if so is he f/t or p/t?
- Re the £1.97m outstanding to PWC, that awaits clearance by IOM courts, do you have any idea when this may be cleared for payment? No. If not would you inform us when either one or both parts totalling the £1.97m are cleared for payment – just so I can adjust the costs data within my Table 11 to allow for this? It will come through in the monthly reporting of cash movements.
KSFIOM Loan Book ‘Maturity Ladder’ & ‘Cash at Bank’ Statements
1a. Can I re ask again whether all those who had loans from 2009 pushed back into 2010 have all repaid their outstanding debt? Or did a residual balance of around £14m move back into 2011? See below
1b. If not, can I ask again, when do you expect repayment in full, as you said they had been given under 1 year to pay the capital due? See below
1c. By the same token was around £8m put back from genuine 2010 loans into 2011?
I don’t see how going into this level of detail on loans actually helps you. What is relevant to any calculations is the value of loans outstanding.
G45 - I did reply to this but did not expect a further reply back. I said –
My thoughts refer to any outstanding or part outstanding loans still due from 2009 and 2010 into 2011.You say you cannot see how knowing that would help me re total value outstanding forloans. And you are correct, but what it would signify to me is this - It would let me see value of loans/part loans outstanding from thesetwo years and therefore that they may be/become problems for you and perhaps then some may develop into default situations. This would allow me to look at potential defaults and in % terms how that might affect returns from the KSFIOM loan book.
2. Can we now expect a ‘6 monthly’ full update reports from now onwards with regard to the KSFIOM liquidation, as you mention in your ‘ 6 monthly report’ dated 9.1.2011? Yes
3a. Is the £0.6m gain (shown in your January 2011 figures report) due to ‘option contracts’ because of ‘hedging’ FX Fluctuations? Yes
3b. If so is this not shown under FX fluctuations because the payments made to ‘hedge’ the FX Fluctuations come from the Bank Cash Book rather than the current FX £15m gains (as at Jan fig 2011)? The fx fluctuations in the loan book report reflect the change in the Sterling equivalent of loans denominated in foreign currencies. It is not adjusted for the effect of currency hedging, which is disclosed separately in the narrative.
KSFUK
Await data from E&Y re 6th dividend or their next ‘6 monthly report in April 2011, before any new questions arise.
CREDITORS
1a. Obviously any future dividend (as in 4th dividend on 15.12.2010) would still be lowered further by the total of outstanding unresolved & unclaimed owed to creditors. So if total was £905m and there was still £15m + £2m = £17m (owed to unresolved + unclaimed) then the Dec dividend would have been be calculated on £905m - £17m = £888m. And the amount due at that point on the £17m for back payments would have been retained separately for possible future payment to these people along with the balance for liquidation costs (currently £7.8m?), is this correct? The distributions were calculated based on a total of £905m, and that part within them which relates to claims which are not resolved have been reserved so that, either, claimants can receive catch up dividends if their claims are agreed, or, it can be distributed to other agreed claimants if they are rejected.
1b. Or does the full £15m unresolved relate to 'set off’ disputes? It does not relate to set off disputes.
1c. Or does none of the £15m relate to ‘set off’ disputes? See above
1d. Now that the £14.9m ‘set off’ has been fully taken into account in the overall total owed to creditors leaving a figure of £905m, can I ask why you still show a figure of £249,623 owed by creditors in 2016 when I think I was informed by yourselves that this was a ‘set off’ situation and once the £14.9m ‘set off’ had been agreed this figure would ‘drop off’ due to ‘set off’ agreements? Set off has not yet been finalised.
2a. With regard to the claims rejected and part rejected by the JLs that total £11.3m, are these claims now totally off the claimants total with no more recourse for repayment? Or are they within the unresolved total held back until further channels of appeals are gone through? You only quoted UK law one time we spoke. I had hoped that the claims summary you posted on the website on 17.9.2010 was going to clarify this point. It did state that 13 claims worth £11m had been wholly rejected and a further 40 claims had been partly rejected in part. And that the rejected portions totalled approximately £300,000. You seem to be saying the same in the Creditors Claims update of 31.1.2011. Can I just clarify, are you saying these claims and part claims were wholly rejected and there is no further action that can be raised to re-instate these claims by claimants? I am satisfied that the claims which have been rejected were invalid, and that attempts to pursue them would fail.
2b. Or are these rejected and part rejected claims still within the scope of the Liquidation, and if so, are they part of the £15m unresolved claims? No
3. If unresolved figure is still £15m has all back money been paid up to date on all agreed claims? Yes
After receipt of the March figures update I added another question to JLs list and sent it off. The question and reply is shown below.
G45 -You are doing very very well and thanks for the data on the 10 existing then the new 'rolling' 10 large loans. At £11.3m on average against £18.95m last July, I feel a lot more secure that we have less to fear if one or two default totally.
Could I add another question;
1. The new 10 largest loans, can I ask the dispersion of these loans by year? I.e. is it 3 (2011), 4 (2012), 2 (2013) and 1 (2014)? It would help me immensely to know the split as I see the figures coming through.
G45 - As shown earlier the JLs agreed split now 3,4,2,1. With the comment below.
BROADLY YES. I SAY BROADLY BECAUSE IN SOME CASES THERE IS MORE THAN ONE LOAN AND DIFFERENT REPAYMENT DATES.
G45 -I take it they meant that some clients have more than one loan, but when added together their value in total, makes them one of the 10 Current largest loans.