KSF IOM Balance Sheet

KSF IOM Balance Sheet

I have been trying to put together a balance sheet showing possible values etc, I know I have some of the info on this site somewhere, but am having difficulty finding it:-(
Perhaps someone would be kind enough to point me in the right direction?
Here are my workings to date http://homepages.manx.net/ksf-info

Balance sheet available in court documents

manksman - a recent KSF IOM balance sheet is available in Aidan Doherty's (KSF IOM's managing director) second sworn affadavit, page 37. See also the position paper.

KSFIOM Balance Sheet

According to the Petition there is £164m on deposit with Kaupthing hf. Not sure how you value that!!

Clarification

Yes but offset by the 185M UKP loan from Kaupthing hf to Kaupthing IOM - only 10M UKP exposure!

"Value" it by writing it off

The chance of getting any money from Iceland at the minute is extremely slim. One of my friends asked me "What's the capital of Iceland?". It's not Reykjavik, it's about £2.50.

KSFIOM Balance Sheet

Sadly, at Zero, unless Iceland can be persuaded to give everyone free holidays?

edit - due to post while I was typing.

I will have a look at this, many thanks

KSFIOM Balance Sheet

I have updated my figures.
I note that SF Asset Management IOM is owed £15m and that there are other liabilities of £10m (tax payable and ordinary creditors?). I expect these will rank as unsecured creditors with any Gov debt being preferential ie they reduce assets for depositors.

What's on hand to be paid out

What's on hand to be paid out to depositors at the moment looks pretty grim. Probably around 10 to 15 pence on the pound as purely a guesstimate.

Then there is 150 million GBP the IOM government says it is prepared to pay in. I ran some run numbers again on estimates I came up with and came up with this for individual depositors using the 150 million:

Deposit: Payout
25K or less - paid in full
50k approx. 28k
75k 32k
100k 35k
150k 40k
200k 50k

Rough numbers based on 8168 individual depositors, with 435 million held in individual and joint depositor accounts according to an IOM today article published 21 October after extrapolating amounts each saver may have had deposited based on the survey at this forum.

Rough numbers based on 8168

Rough numbers based on 8168 individual depositors, with 435 million held in individual and joint depositor accounts

Just a thought on these, how many are active accounts?

Since the company was "made up" from 2 old banks - SF & DBs - there could be quite a few dormant accounts with some holding considerable deposits, others just coppers.

I know from a friends experience some quite considerable sums can be squirreled away by relatives never coming coming to light for many years - his experience was one - where over a period 15 years after a close relatives death bank accounts and property ownership where still popping up.

Would the liquidator be pursuing any dormant accounts or would a time limit for claims be employed by surviving relatives if they know of the accounts - what happens to any deposits in these accounts.

This is pretty meaningless.

This is pretty meaningless. The bank has other assets that you haven't taken into account.

So how much do you think

So how much do you think those assets are, where are they being held and how are they going to be distributed? Or don't you have anything meaningful to add.

I refer you to the discussion

I refer you to the discussion on the subject. It is being discussed in other threads if you search.

http://www.ksfiomdepositors.org/node/1206

The balance sheet as of end September:

http://www.fsc.gov.im/lib/docs/fsc/PressReleases/2ndaffidavitmradoherty.pdf

Anything else you need?

Payout

There are a number of summaries around the site of how much the assets are worth. It is likely that on a gross basis there are enough assets to cover all the liabilities. However, in an administration/liquidation they may be realised at less than their face value causing a less than 100% payout.

The loan book of £410m would be sold at a discount depending on the quality of the loans. The balance owed by KSF UK may be able to have the balance KSF IOM owes them set off leaving a net balance of £386m. It is then dependent on that administration as to the value realised. In addition there is the cash of £110m you are using and a net balance of £10m with Kaupthing Iceland which we can assume is worthless. So it would seem at this stage that we could get back anything from 12% to 100%.

A good summary - though the

A good summary - though the concept of a controlled winding down suggested in Brown's comments today would help the realization of 100% of the loan book.

Basically what has been discussed would be that instead of the IOM government putting in the £150M promised as compensation, they'd up it a little and nationalise the bank (in effect) then run down the loan book as conditions allow over a few years. This would mean that we would all be paid as we wouldn't have to wait until the loan book is cleared - the IOM government does and they get the kudos of supporting the IOM banking economy, we all are grateful and quiet, and everyone is happy.

I also would expect that shifting £10M from Iceland is the least of their problems, and would enable them to say that they discharged their duties 100%

Here's hoping.

Frog - A good Summary

Nice idea frog.

I Like the bit about shifting £10 million from Iceland

I was expecting Iceland to pay me in cod !!

But seriously it would be a bit of good PR for Iceland and with all the debt they are in £10 million or even £30 million is peanuts with the debts they have racked up.

A Good Summary

I don't think enough is known about the types of Depositor and size of balance to give much guidance on the DCS payout level - there are company accounts, trusts, and client accounts as well as any dormant accounts, also I don't think the data collected on this site gives a hint about how many were joint accounts. Some form of reconstruction/rescue/long term runoff would seem to offer the best hope to all but the smaller deposits.

The real question as ever comes back to the value in London. It is such a great pity that all is such a secret. If it was known how much that was likely to be, and some idea of a timescale for the payout it would greatly help in putting together a rescue for the KSFIOM operation.

Amidst all of this some cod from Iceland would be a great help, I am sure that the sale of several thousand tonne would go a long way - the last price I saw was over £6000 per tonne (a couple of years ago).

KSF IOM Balance Sheet

I am wondering how the return of inflight deposits will alter the balance sheet.

As I see it there are three parts:
1) All canceled transfers will increase the liabilities of KSF IOM - this is possibly in the order of £100m (maybe two and a half days withdrawals)
2) Monies being paid from KSF IOM via 3rd party banks will now be returned to KSF IOM and increase available bank balances.
3) Monies which were to be paid out of KSF IOM's account with KSF UK - when the payment was initially "started" it reduced the amount that UK owed IOM, now it has been canceled it will increase amount UK owes IOM

Except for the values involed points 1 and 2 are clear. I am a little uncertain as to what has happened at point 3 - trusting that like the stopped payments from depositors a/cs with KSF IOM this will be re credited to KSF IOM's a/c in London.

Does any one have any thoughts on this?

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