Notice as at 11th December 2018

Please see below for our latest status update and guidance for DCS & EPS claimants.

Early Payment Scheme 1 (“EPS 1”) and/or 2 (“EPS 2”) claims (collectively, the “EPS”);
The Isle of Man Depositors’ Compensation Scheme Regulations 2008 (the “DCS”);
Kaupthing Singer & Friedlander (Isle of Man) Limited (In Liquidation) (“KSF”);
Deferred Interest & Statutory Interest, together (“Surplus Interest”);

Current Position

There was a hearing at the Isle of Man High Court on 30 October 2018 which, among other matters, considered the payment, by KSF to the Scheme Manager, of any Surplus Interest due to depositors who claimed in the DCS and/or the EPS.

Surplus Interest is made up of any Deferred Interest payable to a depositor and thereafter Statutory Interest payable to all depositors (defined and described in the Help Sheet - Illustration of Surplus Interest).

The outcome of this hearing is that the DCS will administer Surplus Interest payments to EPS claimants, including for those who only participated in the EPS and did not participate directly in the DCS (some of whom also went on to receive dividends from KSF).

The Scheme Manager of the DCS will distribute all Surplus Interest it receives from KSF (being the final dividend from KSF) to the relevant DCS & EPS claimants, without retaining any amounts that may have been due to it, and without charging any administration fee against claimants. In light of this decision, and to minimise costs to the DCS, the Scheme Manager will issue final distributions by way of GBP cheque payment.

Address Confirmation Needed

Due to the length of time that has passed since the majority of payments were last made, DCS & EPS claimants who wish to receive the Surplus Interest payment (the final dividend) will need to confirm or update their address details by completing the linked form and submitting it to the Scheme Manager, to the address above: Confirmation / Update of Address Form.

Any information gathered at this date will be processed in due course. Please do not expect an immediate response. Queries will be dealt with in the date order that they are received.

Expected Timing of the first DCS cheque run

The timing of the first DCS cheque run is dependent on the date of the KSF final dividend.

The Liquidator’s website contains the latest updates in respect of the KSF liquidation, please refer to www.kaupthingsingers.co.im for further information.

Estimated Value of Final Dividend Distribution

The final dividend distribution of Surplus Interest from the KSF liquidation is expected to be in the range of 1.5p to 2p in the £ of the unsecured creditor claim of a relevant DCS / EPS claimant. So for example, an EPS only claimant with a £2,000 claim, might ultimately expect to receive in the region of £30 - £40.

The final dividend will be calculated by KSF in two parts; being any Deferred Interest payable and thereafter Statutory Interest. Importantly, this calculation will not be undertaken by the Scheme Manager of the DCS.

The Scheme Manager understands that Deferred Interest will be assessed first by KSF, and if due to the claimant, an amount will be assigned to that claimant. After providing for Deferred Interest payments, we then expect KSF to issue an “pence in the £” rate for Surplus Interest. The Scheme Manager has prepared a help sheet to illustrate estimated outcomes and explain Deferred and Surplus Interest; please see Help Sheet - Illustration of Surplus Interest.

Further Information

Please refer to Frequently Asked Questions.

Frequently Asked Questions
Ref Question Answer Documentation
1 How do I confirm or update my address? Please use the Confirmation / Update of Address form and guidance to confirm your address and send it to the address above. Confirmation / Update of Address Form
2 I am an EPS claimant who did not participate in DCS, will I receive a dividend?

If your claim is verified by the Scheme Manager to an EPS payment, and you successfully complete a confirmation of address form, you will be paid a dividend.

In order for the Scheme Manager to check your details, please complete Confirmation / Update of address form.

Confirmation / Update of Address Form
3 How much dividend should I expect to receive? Please see help sheet. Help Sheet - Illustration of Surplus Interest
4 The EPS/DCS claimant is deceased, what do I do? In order to receive further information and or claim the final dividend distribution, you will need to provide evidence of your authority to act to the Scheme Manager, and if you wish to claim the surplus interest payment you will need to obtain Manx Probate; please see help sheet. Help Sheet - Isle of Man Probate