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Joint Administrators hold creditors’ meeting of Landsbanki Guernsey Limited (in Administration) |
The Administrators of Landsbanki Guernsey Limited (“the Bank”), which was placed into Administration on 7 October, held a creditors’ meeting on 20 January 2009 in Guernsey. The affairs, business and property of the Bank are being managed by the Joint Administrators, Rick Garrard and Lee Manning of Deloitte, the business advisory firm.
Rick Garrard, Joint Administrator and Deloitte Partner, commented: “The creditors’ meeting forcefully demonstrated the strength of creditors’ feelings that they have been let down by the authorities in Guernsey and the UK. I have the deepest sympathy for the depositors having listened to their concerns over the last three months, but advised creditors that the Administration is primarily for legal process”.
“Although not required under Guernsey Law, the creditors did agree to the establishment of an Informal Creditors’ Committee (“the Committee”) to represent all creditors and the first meeting has been held. I expect the Committee will consider in more detail the asset realisation strategy of the Bank and the results of the Administrators’ investigations into the affairs of the Bank. Some of these matters are sensitive and have remained confidential but it will be necessary for the Joint Administrators to discuss with the Committee how best the information from these investigations can be used in the best interest of creditors”.
“Creditors have been advised of the progress of the Bank’s administration and the administrations of Heritable Bank Plc (“Heritable”) and Landsbanki Islands hf to whom the Bank had lent a total of £49 million. The Joint Administrators attend the Creditors’ Committee Meetings for these two Banks and are in regular contact to protect the interests of the Bank’s creditors as far as possible. The Joint Administrators expect a dividend from Heritable in 2009 but the claims against Landsbanki Islands hf both in respect of the deposits held by it for the Bank and in respect of the guarantees given by it in respect of the Bank's liabilities are expected to take much longer to resolve following the announcement of a Moratorium of up to two years, while the assets of Landsbanki Islands hf are realised”.
“To date £34.6 million out of £36.5 million set aside has been paid to depositors who have requested repayment of 30p in the £1. Only a small number of depositors have not requested payments. Cash and accumulated interest remains available to enable such payments to be made to those depositors who have not yet requested payment”.
“We expect another payment will be made available to creditors in 2009 although the timing and amount of this will be determined by the uncertain realisation of assets. Creditors can rest assured that the Joint Administrators are seeking to maximise the recoveries in these very testing economic times. This does mean that more time is often required, for example, to allow borrowers to repay their loans in full. However, the Joint Administrators continue to believe that the recovery of all creditors’ money can only be achieved if outside financial assistance is provided to them.
“We will continue to update creditors as and when there are significant developments to report. I thank all creditors for their patience and understanding during this very testing time.”
ends
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In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms. Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk\about for a detailed description of the legal structure of DTT and its member firms. The information contained in this press release is correct at the time of going to press. For more information, please visit www.deloitte.co.uk.
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