Meeting with Mike Simpson 20/10/08

Meeting with Mike Simpson 20/10/08

Author: Dave Braddon

Meeting with Mike Simpson, the provisional liquidator
20th October 2008

The questions compiled by the KSF(IOM)DAG were put to Mr Simpson. However, despite Mr Simpson giving the group an hour of his time, he was unable to provide the group with much information other than that which has been published on the website.

http://www.kaupthingsingers.co.uk/Pages/3989

Present: Mike Simpson
David and Lynn (Braddan)
Paul G (elpasout)
Paul M
Gary H

BASIC FACTS AND FIGURES & WHERE ARE THE ASSETS?

Mr Simpson was unable to reply to most of these questions as the court papers in London relating to the administration of Kaupthing UK are sealed. The liquidator has been denied access to these papers. When asked the reason for this he replied that it was “an interesting question as it is without precedent.

Mr Simpson did say £100m in total is either on the IOM or with independent banks outside the Group (ie Kaupthing UK) and is in the process of “pulling money back in” from the other banks.

Regarding the amounts owed to individuals, companies etc, Mr Simpson said that the bank (KSF IOM) has this analysis.

He has representatives in Iceland seeking information from Icelandic regulators regarding assets in Iceland.

His recent meeting in London with “administrators and lawyers was useful with some progress made in trying to agree asset position. However, they are “working in the confines of the court order”.

PROCESS AND PROCEDURE

Mr Simpson said he was happy that he has access to the resources needed to handle the matter and he was getting support from the IOM government and from the FSC.

LIQUIDATION

Any postponement of the winding up procedure has to come from the FSC and Mr Simpson could not comment one way or the other as to whether it should or should not go ahead.

He added that if liquidation were to go ahead, a company could be taken out of liquidation and that he does not “think” it would affect any negotiations regarding a possible sale. However, when pressed, agreed it may not be helpful.

ACQUISITION INTEREST

He confirmed that there are a number of parties with a serious interest in the acquisition of the loan book side and that there is also some interest in the deposit side.

PARENTAL GUARANTEE

The guarantee is being looked at in Iceland. However, The parental guarantee is a ‘guarantee of last resort’ to be brought into place when all else fails.

IN-FLIGHT TRANSACTIONS

The list of transfers has been given to the administrators of Kaupthing UK. They have to agree what stage these individual transfers are at. He is still in the process of taking legal advice as to which transactions should be moved forwards and which should be called back. Mr Simpson said he doesn’t know how long this will take as the administrators’ priority is to transfer assets from KSF UK to ING before acting on KSF IOM matters. He added that some in flight transactions ”may go on to final destination but others for whatever reason may have to come back”.

IMPROVED COMMUNICATIONS

Mr Simpson said he would put updates on the bank website. He does not know all the facts yet but as they come to light he will inform depositors.

He apologised for being several days behind in responding to emails due to the large number received but is doing his best to catch up.

GENERAL COMMENTS

Mr Simpson told those present that the point has been made to the FSA in London that much of the money involved was individuals’ money and it was “sympathetic”.

He added that it will probably transpire that what happened to us was a ‘”side effect” and that UK authorities didn’t realise that what they did would affect depositors in the IOM.

IMPORTANT

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