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Landsbanki Guernsey Limited (in Compulsory Liquidation)

25 June 2014

Update on Liquidation

This update is being provided to keep creditors informed of the progress of the Liquidation of Landsbanki Guernsey Limited (in Compulsory Liquidation) (“LGL”).

Alternative Claim

Creditors are advised that the Joint Liquidators’ Icelandic Counsel have recently indicated that the court hearing is not expected to take place until late November 2014 due to the significant number of cases still being heard by the Icelandic courts and the limited availability of the appointed judge.

Appointment of an additional liquidator

Due to the retirement of Rick Garrard from Deloitte LLP, Mr John Clacy has been appointed as an additional Joint Liquidator by the Court. Rick will remain as a Joint Liquidator and creditors will retain the benefit of his knowledge of LGL's administration and liquidation.  It is expected that John will deal with any operational matters which may arise where Rick is unavailable.  No additional costs are expected to arise from the appointment of the additional liquidator.

Expected outcome

The Joint Liquidators continue to maintain the upper end of their recovery expectations for LGL at 91p/£. Should LGL be successful in the Alternative Claim recoveries are expected to be significantly higher than 91p/£ although the Joint Liquidators continue to be cautious about this eventuality.

Future distributions

Cash balances currently available for distribution (excluding any amounts due on the realisation of the LIHF debt and those ring fenced amounts due to depositors who have yet to claim the interim distributions) amount to approximately £1.5m.  As previously announced, the Joint Liquidators do not expect to make any further distributions to creditors until the final dissolution of LGL. This is not expected to be until the final resolution of the Alternative Claim (see above).

Creditors and depositors are reminded of the requirement to notify the Joint Liquidators of any change in contact or nominated account details.  Any depositor or other creditor who has yet to make contact with the Joint Liquidators or receive the first or second distributions is asked to contact the Joint Liquidators as soon as possible.

Further communications

Updates will continue to be made via the website when significant matters arise in order to keep costs to a minimum.

Note: This update has been prepared for the benefit of creditors. The information presented in this report has not been subject to independent audit verification by Deloitte LLP or by the Joint Liquidators.

MORE Previous updates

  • Landsbanki Guernsey Limited (in Compulsory Liquidation) update 17 October 2013
    This update is being provided to keep creditors informed on the progress of the Liquidation of Landsbanki Guernsey Limited.

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