Tenth distribution from the liquidator

The liquidator has announced that he will make a tenth distribution of 2p on 28th November 2014. As described below, the Scheme Manager must allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts will be processed to establish if there are any recoveries in excess of the compensation already paid.

When excess payments are due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will seek to process surplus payments as quickly as possible, however, due care is essential. In accordance with his previously stated policy, it will be his aim to despatch payments no later than 15 December 2014. The Scheme Manager will do everything possible to release the payments more quickly but is not able to guarantee that he will be able to do so.

If the Scheme Manager is able to advance the timetable a notice will be posted on this site.

Ninth distribution from the liquidator

The liquidator has announced that he will make a ninth distribution of 2.2p on 12 September 2014. As described below, the Scheme Manager must allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts will be processed to establish if there are any recoveries in excess of the compensation already paid.

When excess payments are due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will seek to process surplus payments as quickly as possible, however, due care is essential. In accordance with his previously stated policy, it will be his aim to despatch payments no later than 26 September 2014. The Scheme Manager will do everything possible to release the payments more quickly but is not able to guarantee that he will be able to do so.

If the Scheme Manager is able to advance the timetable a notice will be posted on this site.

Eighth distribution from the liquidator

The liquidator has announced that he will make a seventh distribution of 4.8p on 28 June 2013. As described below, the Scheme Manager must allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts will be processed to establish if there are any recoveries in excess of the compensation already paid.

When excess payments are due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will seek to process surplus payments as quickly as possible, however, due care is essential. In accordance with his previously stated policy, it will be his aim to despatch payments no later than 12 July 2013. The Scheme Manager will do everything possible to release the payments more quickly but is not able to guarantee that he will be able to do so. If the Scheme Manager is able to advance the timetable a notice will be posted on this site.

Seventh distribution from the liquidator

The liquidator has announced that he will make a seventh distribution of 7.8p on 15 June 2012. As described below, the Scheme Manager must allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts will be processed to establish if there are any recoveries in excess of the compensation already paid.

When excess payments are due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will seek to process surplus payments as quickly as possible, however, due care is essential. In accordance with his previously stated policy, it will be his aim to despatch payments no later than 29 June 2012. The Scheme Manager will do everything possible to release the payments more quickly but is not able to guarantee that he will be able to do so. If the Scheme Manager is able to advance the timetable a notice will be posted on this site.

Sixth distribution from the liquidator

The liquidator has announced that he will make a sixth distribution of 9.6p on 11 November 2011. As described below, the Scheme Manager must allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts will be processed to establish if there are any recoveries in excess of the compensation already paid.

When excess payments are due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will seek to process surplus payments as quickly as possible, however, due care is essential. In accordance with his previously stated policy, it will be his aim to despatch payments no later than 28 November 2011. The Scheme Manager will do everything possible to release the payments more quickly but is not able to guarantee that he will be able to do so. If the Scheme Manager is able to advance the timetable a notice will be posted on this site.

Fifth distribution from the liquidator

The liquidator has announced that he will make a fifth distribution of 12.5p on 8 April 2011. As described below, the Scheme Manager must allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts will be processed to establish if there are any recoveries in excess of the compensation already paid.

When excess payments are due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will seek to process surplus payments as quickly as possible, however, due care is essential. In accordance with his previously stated policy, it will be his aim to despatch payments no later than 26 April 2011. As this Easter weekend and a public holiday and the postal services may not be functioning as normal, the Scheme Manager will do everything possible to release the payments more quickly but is not able to guarantee that he will be able to do so. If the Scheme Manager is able to advance the timetable a notice will be posted on this site.

Payments of surplus' following 4th liquidation distribution

The Scheme Manager is pleased to confirm that all surplus payments have now been despatched by post or paid by bank transfer according to the instructions on claimants' account records.

Fourth distribution from the liquidator

The liquidator has announced that he will make a fourth distribution of 10p on 15 December 2010. As described below, the Scheme Manager must allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts will be processed to establish if there are any recoveries in excess of the compensation already paid.

When excess payments are due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will seek to process surplus payments as quickly as possible, however, due care is essential. In accordance with his previously stated policy, it will be his aim to despatch payments no later than 25 December 2010. As this is a public holiday and the postal services will not be functioning as normal, the Scheme Manager will do everything possible to release the payments more quickly but is not able to guarantee that he will be able to do so. If the Scheme Manager is able to advance the timetable a notice will be posted on this site.

Third distribution from the liquidator

The liquidator made a third distribution of 11.1p on 9 July 2010. As described below, the Scheme Manager must now allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts will be processed to establish if any recoveries are in excess of the compensation already paid.

When excess payments are due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will seek to process surplus payments as quickly as possible, however, due care is essential. It will be the target of the Scheme Manager to have payments despatched no later than 23 July 2010.

The content of the home page has been cleared as the Compensation Scheme enters a new phase. The overwhelming majority of claims have been paid. Of the few remaining, all have been contacted.

A number of payments have been made to claimants that have not cleared the Scheme Manager’s bank account. Any claimant who believes that they should have received compensation, but has not done so, is invited to contact the Scheme Manager.

The following sections set out a number of areas where there may still be concerns.

Late claims

The Scheme was fully open to claims for six months after the date of default, ie to 27 Novemebr 2009. After that date, the Scheme presumes that claims will be rejected, except for exceptional circumstances. The Scheme Manager will assess each late claim on its merits. However it is important to be aware that in accordance with the Regulations no new claims can be accepted after 27 November 2010. This represents an absolute cut-off date.

Distributions from the liquidator

The liquidator will be making periodic distributions. On receipt of the funds, the Scheme Manager must allocate the funds to the appropriate claimants. Having allocated the distribution the claim accounts are processed to establish if any recoveries are in excess of the compensation already paid.

When excess payments are, due they will be paid to claimants in accordance with the payment details on the claim record. The Scheme Manager will publish the date on which he receives the distribution on this site. It will seek to process surplus payments as quickly as possible, however, due care is essential. It will be the target of the Scheme Manager to have payments despatched within ten working days of the receipt of the funds.

Redirect surplus payments

The Scheme Manager and Joint Liquidators have discussed how, once compensation had been recovered, future surplus payments might be made directly by the liquidator on the basis of an instruction to redirect such payments.

In the detailed consideration of this proposal, it has been concluded that the responsibility for calculation of the payment, and the subsequent instruction to the Joint Liquidators would be the sole responsibility of the Scheme Manager and the Joint Liquidators would merely act as the Scheme Manager’s agent on instruction. In the Scheme Manager’s view this is an arrangement that would increase the risk of error and save a limited amount of time, if any. At present this facility will, therefore, not be pursued.

Re-assignment of claims

Previously, on this site, the Scheme Manager stated that it would be prepared to re-assign claims back to claimants when compensation payments had been fully recovered from the liquidation.

The process of re-assigning a claim requires the liquidator to substitute the name of the person on the Proof of Debt. In this case the Scheme Manager is the name on the Proof of Debt and the claimant’s name would be the substitute. Under separate provisions unrelated to the Compensation Scheme, we understand that the substitution of a name on a Proof of Debt may require the consent of the Court, and in those circumstances the application would be made by the substitute ie the claimant on notice to the Joint Liquidators.

The Scheme Manager is actively considering how best to approach this process to minimise complication and costs for all concerned. An update in relation to the re-assignment process will be posted on this web-site as soon as possible.

Claimant statements

A number of claimants have requested status reports in relation to their claims and explanations of when they may expect to receive additional funds. While the Scheme Manager is not in a position to predict the distribution expectations in advance of announcements by the Joint Liquidators, a new facility has been provided to allow claimants to view the transactions on their claim account.

This statement may be accessed from the appropriate link on the Claimant Summary – you can access the summary using your existing logon details.

The Compensation Scheme closed to new claims (except for exceptional circumstances) on 27 November 2009. Of the 6,395 claims, 6,066 have been approved for payment – 95%.

Those that have not yet been completed fall into two categories:

1 – claims submitted during October and November and still progressing through the validation process with the Scheme Manager and liquidator – these amount to approximately 125 cases.

2 – the remaining 204 cases have unresolved issues. A large majority of these have been contacted by the Scheme Manager already, but to date a number of claimants have not responded. The Scheme Manager will now undertake a further round of contact with claimants to ensure that those claims with issues are brought to the claimants attention.

In the meantime all claimants, where the DCS has received sums from the liquidator by way of distributions in excess of the compensation payment, will have received the surplus automatically. Any surpluses on claims approved since Christmas will receive the excess shortly.

The Depositors Compensation Scheme will close for the Christmas period from mid-day on 24 December 2009 and will re-open on Monday 4 January 2010. Please note that during this period voice messages and emails will be held until the DCS team returns in January.

The Scheme Manager and DCS team wishes all claimants a Happy Christmas.

Claimants may be aware of the possibility that underlying depositors’ of Kaupthing Singer and Friedlander (Isle of Man) Limited (in liquidation) may be able to claim against the parental guarantee given by Kaupthing hf.

The Scheme Manager is not is a position to take Icelandic legal advice to assess the likelihood of such a claim being successful before the filing date. However, it will lodge a claim with the winding-up committee of Kaupthing hf as a protective measure.

DCS claimants will be aware that they have assigned all their rights to the Scheme Manager and should not seek to register a separate claim in their own name.

At this time the Scheme Manager will not be in a position to answer any individual queries relating to the parental guarantee.

The liquidator has announced that the second dividend will be declared on 8 December 2009.

Accordingly, the process set out in the next section will be implemented from that date.

The liquidator has announced that he intends to pay a second dividend in December 2009. At present, the date and value of the distribution have not been confirmed. This notice is intended to inform those claimants who will be due to receive additional funds, over and above the compensation already paid to them from the Depositor' Compensation Scheme.

There will be three phases to the process commencing from the date that the DCS is in receipt of the second dividend funds from the liquidator. The proposed timetable is as follows and updates will be provided as appropriate during the payment process.

WEEK 1

The Scheme Manager will allocate the distribution to each account and reconcile the total amounts expected and received. Each claimant will be subject to a calculation to identify the amount payable to him or her.

WEEK 2

Payment instructions, based on previously held information, for payment by bank transfer or cheque, will be prepared and printed.

WEEK 3

Payments will be passed to the authorised signatories for completion and despatch, either to the banking system or post.

The start date for this process will be published on the web-site as soon as it is known. Claimants are respectfully requested not to make individual enquiries about surplus payments during this processing period as this will delay matters.

For the sake of clarity, the above arrangements are necessary because, in making a claim on the DCS, claimants assigned their rights as depositors to the DCS. The DCS is now passing on surplus funds recovered by and received from the liquidator (after being reimbursed for the compensation paid) to relevant claimants.

Please note that Friday 27 November 2009 was the last day on which new claims for compensation could be registered.

Under the Scheme Regulations applications for compensation shall be rejected if submitted more than six months after the depositor became aware, or ought reasonably to have become aware, of the default. The date of default was 27 May 2009. As a period of over six months from the closure of the bank elapsed leading up to the rejection of the Scheme of Arrangement by the creditors, the Scheme Manager has concluded that depositors ought reasonably to have been aware of the date of default.

Claimants should note that any claims submitted but not completed by this date are not excluded from compensation, but will processed through to completion.

Any person who wishes to make a claim after the 27 November 2009 should write to the Scheme Manager setting out the full circumstances and reasons why the claim should be accepted.

Please note that Friday 27 November 2009 is the last day on which new claims for compensation can be registered.

Under the Scheme Regulations applications for compensation shall be rejected if submitted more than six months after the depositor became aware, or ought reasonably to have become aware, of the default. The date of default was 27 May 2009. As a period of over six months from the closure of the bank elapsed leading up to the rejection of the Scheme of Arrangement by the creditors, the Scheme Manager has concluded that depositors ought reasonably to have been aware of the date of default.

Payment update

On Monday 9 November 2009, the claim approval process for some 700 claimants was completed. The personal validation pages have been updated to show those to whom payments will now be made - please check your personal record.

The payments, whether by cheque or by transfer have now been prepared and are in the hands of the signatories for their approval. Due to the volume of payments this may take until the end of this week. As indicated for all payments, the DCS would ask that you do not seek information on the receipt of funds for ten working days.

The number of claimants paid has now passed the 5300 mark and represents 90% of claimants. The Scheme Manager understands that for those who have not yet been paid, and especially those that submitted claims early, the delay in settling the claims is frustrating. The Scheme Manager is working to resolve the outstanding issues as soon as possible.

Thank you for your continued co-operation.

Payments

The total of claims paid currently stands at over 4,300. Periodic agreement of assignments are made by the Liquidator and this will give rise to the next payment run.

Signature verification issues

The Scheme Manager recently contacted a number of claimants where there are unresolved validation issues. Many claimants have responded with the additional information required. However, claimants are asked to remember that the queries largely involve the liquidator's ability to validate the form of notice of the assignment and that submission of the information to the Scheme Manager does not lead to an automatic clearance of the claim. The Scheme Manager will process the claims to their conclusion when the liquidator approves the assignment. If further issues arise, claimants will be contacted directly.

Unresolved claims

The Scheme Manager continues to work through claims and will contact claimants if issues cannot be resolved in conjunction with the liquidator.

Bank details

Claimants are reminded to check their Claim Summary and when the form is available, to complete the Payee Bank details, if they wish to receive compensation by electronic transfer.

Tracing Payments

Many of the payments have been made by automated electronic bank transfers. These systems are sensitive to data entry accuracy and the Scheme Manager is aware that some have been rejected for a number of reasons. If you have not received your funds ten working days after the date indicated on your Validation page and wish to confirm payment details, please do not telephone as tracing requires time and cannot be undertaken immediately. Please email dcs@kpmg.co.im and use the following subject title in your email “TRACING REQUEST – PAYMENT DATE DD/MM/YY”. Please use your DCS login id in the email text. Tracing requires detailed checks and will take some time so an immediate response cannot be guaranteed.

General telephone and email status enquiries

The telephone helpline and email continue to receive numerous enquiries seeking a general status update on claims. The Scheme Manager is devoting the majority of his resources to completing the claims process. General status enquires where no additional information can be provided than already stated on the Validation pages will not be followed up.

All other queries will be dealt with in due course.

Thank you for your continued co-operation.

Payments

The payments approved on 1 October brings the total of claims paid to over 4,000. This represents some 70% of all regiseterd claims.

Unresolved claims

The Scheme Manager appreciates the concern of those who have not yet been approved and particularly of those who filed their claims in June and early July. These are subject to review because there are unresolved queries between the Scheme Manager and the liquidator or inconsistencies in the claim information. The Scheme Manager is seeking to resolve these queries as quickly as possible. A substantial number of the 700 payments made this week have resulted from the clearance of such queries. This work stream continues.

Bank details

Claimants are reminded to check their Claim Summary and when the form is available, to complete the Payee Bank details, if they wish to receive compensation by electronic transfer.

Tracing Payments

Many of the payments have been made by automated electronic bank transfers. These systems are sensitive to data entry accuracy and the Scheme Manager is aware that some have been rejected for a number of reasons. If you have not received your funds ten working days after the date indicated on your Validation page and wish to confirm payment details, please do not telephone as tracing requires time and cannot be undertaken immediately. Please email dcs@kpmg.co.im and use the following subject title in your email “TRACING REQUEST – PAYMENT DATE DD/MM/YY”. Please use your DCS login id in the email text. Tracing requires detailed checks and will take some time so an immediate response cannot be guaranteed.

General telephone and email status enquiries

The telephone helpline and email continue to receive numerous enquiries seeking a general status update on claims. The Scheme Manager is devoting the majority of his resources to completing the claims process. General status enquires where no additional information can be provided than already stated on the Validation pages will not be followed up.

All other queries will be dealt with in due course.

Thank you for your continued co-operation.

Payments

Since the beginning of September, compensation for 3,350 claimants have been approved for payment and by the end of this month the overwhelming majority will have received payment.

The next payment run will be initiated within the next ten days and will include a further 500 claimants. The total will then comprise approximately 70% of all claimants to date.

Unresolved claims

The Scheme Manager appreciates the concern of those who have not yet been approved and particularly of those who filed their claims in June and early July. These are subject to review because there are unresolved queries between the Scheme Manager and the liquidator or inconsistencies in the claim information. The Scheme Manager is seeking to resolve these queries as quickly as possible.

Trusts (including pension plans)

The Scheme Regulations contain provisions relating to beneficiaries of trusts that require a detailed review of trust documentation before the eligibility of claimants can be confirmed. Trusts deeds are complex legal documents and the review process is underway. However this cannot be rushed and trust claimants are asked to await further communication when the reviews of documentation are complete.

Bank details

Claimants are reminded to check their Claim Summary and when the form is available, to complete the Payee Bank details, if they wish to receive compensation by electronic transfer.

Tracing Payments

Many of the payments have been made by automated electronic bank transfers. These systems are sensitive to data entry accuracy and the Scheme Manager is aware that some have been rejected for a number of reasons. If you have not received your funds ten working days after the date indicated on your Validation page and wish to confirm payment details, please do not telephone as tracing requires time and cannot be undertaken immediately. Please email dcs@kpmg.co.im and use the following subject title in your email “TRACING REQUEST – PAYMENT DATE DD/MM/YY”. Please use your DCS login id in the email text. Tracing requires detailed checks and will take some time so an immediate response cannot be guaranteed.

General telephone and email status enquiries

The telephone helpline and email continue to receive numerous enquiries seeking a general status update on claims. The Scheme Manager is devoting the majority of his resources to completing the claims process. General status enquires where no additional information can be provided than already stated on the Validation pages will not be followed up.

All other queries will be dealt with in due course.

Thank you for your continued co-operation.

Over the course of the last ten days we have received a large volume of emails, many of them repeated, together with phone calls and voice messages. We have endeavoured to answer these, however, the duplications and volumes have become unmanageable.

Most of the messages, understandably, relate to your wish to be updated on the status of your claim. You will appreciate that the validation and agreement of claims is a process where the Scheme Manager and Liquidator must exercise appropriate care before authorising payments. This is not a process that can be rushed.

To assist you to understand the current status of your claim we have included more information on the Validation page of your claim documents, which can be accessed through the website. The details will indicate where you are in the claim process. If you are required to take any actions you will be notified directly by the DCS team.

If you have specific queries that are not related to the status of the claim itself, please continue to use the email dcs@kpmg.co.im as the primary means of communication. However we are presently not in a position to enter into detailed email or telephone discussions about the general progress of all claims.

We fully understand that you want to receive compensation as soon as possible, and that a long time has elapsed since the bank ceased to trade. However I hope you understand the importance of allowing due process to complete.

Thank you for your co-operation.

The Scheme Manager of the Depositors' Compensation Scheme has been processing claims for compensation. A significant number have been completed and payments initiated today, either by cheque or electronic transfer, according to the instructions given. (see Bank Transfer Instructions below).

Meanwhile the processing of claims is ongoing and further payments will be released on a frequent basis starting next week.

The Scheme Manager would ask for your patience and remind you that there are a number of reasons why payments may not yet have been made. You are kindly asked to refer to the payment announcement following this section to remind you of the different possiblities.

The Joint Liquidators of KSFIOM have announced that a first dividend of 22.1p in the pound will be made to creditors on 4 September 2009.

In the meantime the Scheme Manager of the Depositors' Compensation Scheme has been processing claims for compensation and plans to make payments to the first batch of eligible claimants also on 4 September 2009. Payments will be made either by cheque or electronic transfer, according to the instructions given. (see Bank Transfer Instructions below)

The Liquidator has now completed the initial review and validation of the claims sent to him by the Scheme Manager and claims broadly fall into three categories:

• Claims which have been validated.
  • These claims will be included in the first batch of payments to be issued on 4 September 2009.
• Claims received prior to 4 July 2009 in respect of which either the Liquidator or the Scheme Manager has queries regarding some aspect of the claim.  The process in respect of these claims will be as follows:
  • The Scheme Manager will contact claimants to discuss the issue that has arisen and agree what steps need to be taken to successfully complete the validation process.
  • If the issue is one that has been identified by the Liquidator any new information made available will be presented to the Liquidator for approval.
  • If the issue is one that has been identified by the Scheme Manager then once resolved the claim will be approved.
  • Compensation in respect of claims that have been delayed but subsequently admitted through this process will be issued immediately, they WILL NOT be held over until the end of September.
• Claims received after 4 July 2009 which are still going through the validation process. 
  • Subject to the approval of the claim and the Liquidator's acceptance of its assignment, compensation will be paid in a future batch of payments.
  • It is intended that there will be at least one payment run per month. until the scheme closes
  • As soon as claims are validated then they will be paid in the first payment run following the date of validation.