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Landsbanki Guernsey Limited (in Administration) (“the Bank”) – third distribution to creditors |
The Joint Administrators of the Bank are pleased to announce that they intend to pay a third distribution to creditors of between 11 and 12.5 pence in the pound in January 2010. This will bring the total repayments to date to between 66 and 67.5 pence in the pound. In addition, the ultimate recovery for creditors is now estimated by the Joint Administrators to be between 85 to 91 pence in the pound.
The increase in the recovery range reflects the largely successful realisation of assets in 2009 driven, in part, by better than feared market conditions and the intense efforts of the Administration team.
However, it should be noted that these estimated returns are still subject to a wide range of factors primarily connected to the UK residential property market, many of which are outside of the Joint Administrators control, which may result in the actual return being lower or higher than this range.
The Joint Administrators are currently waiting for a further significant asset sale to complete and the receipt of the second distribution from Heritable Bank Plc (in Administration) and will write to all creditors of the Bank in early January with details of the third payment amount. The Joint Administrators will also release their Third Interim Report to creditors at this time.
The Joint Administrators are also able to confirm that the Administration of the Bank has been extended until 6 January 2011. The key reason for the extension of the Administration is to ensure the optimal realisation of the Bank’s remaining assets.
The Joint Administrators anticipate being able to make further distributions in 2010 but note that the pace of further realisations is now largely dependent on the successful development and sale of UK residential property sites and the run off of the Heritable Bank Plc (in Administration) UK residential mortgage book while conditions for the sale of whole loans or developments remain very weak.
The Joint Administrators continue to pursue prudently the Bank’s claims in Iceland with the assistance of the States of Guernsey.
Ends
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