Dear (Client name)
Please find enclosed your annual letter updating you on the major events concerning Kaupthing Singer and Friedlander (Isle of Man) Ltd (KSF) that occurred during 2012.
There was one distribution of 7.8% paid on 18 June 2012 which brought the distributions paid to date to 91%.
Whilst quarterly contractual administration charges still apply to your Bond we will continue to rebate fees on the undistributed portion of your investment until such time as the liquidation process is complete.
On August 17 2012 the Joint Liquidators (JLs) published their most recent report. This can be seen in full on http://www.kaupthingsingers.co.im/2012/august/17august2012/. The report shows that 2012 has been another positive year for the liquidation process and the JLs have once again revised the estimated return upwards. The revised final return is now estimated as between 97.2% and 99%. This does not allow for any return in respect of the parental guarantee nor does it allow for any potential recoveries arising out of the ongoing investigation into the Company’s affairs. The JLs have also announced that a minimum distribution of 3% will be paid in 2013. No payment date has been given yet. Once the payment date is known it will be published on Skandia International’s website. The link to the website is given below.
The committee of inspection has asked the JLs to explain how interest would be paid if 100% was recovered. They (JLs) have stressed that their expectation is that the recovery will fall within their present estimate; but have provided an explanation of how any interest would be distributed if 100% was achieved. This can be viewed using this link www.kaupthingsingers.co.im/2013/january/18january2013/. For the background to this issue please refer to the letter on deferred interest sent to you in January 2010 or to update 6 on Skandia International’s website. The link to the website is given below.
Any major events that occur during 2013 will be reported on the Skandia International website and we will write again to affected policyholders with a further update at the beginning of 2014. However, in the meantime we would strongly recommend that, if possible, you regularly monitor the liquidators website http://www.kaupthingsingers.co.im as well as http://www.skandiainternational.com/KSF/ or contact our Helpdesk directly on +44 (0)1624 655465 if you require specific assistance.
Yours sincerely
John Hollis
Financial Director