Bloomberg News

Kaupthing U.K. Unit Repaid $5.4 Billion to Unsecured Creditors

May 14, 2012

Kaupthing Singer & Friedlander, the U.K. unit of Icelandic bank Kaupthing Bank hf, has repaid 3.36 billion pounds ($5.4 billion) of the 4.6 billion pounds owed to unsecured creditors.

The eighth payment, made on May 2, means creditors have received 73 pence for every pound loaned to the bank, Singer & Friedlander Asset Management, which was hired by administrators Ernst & Young LLP to manage the bank’s assets, said in a statement today.

Ernst & Young estimates unsecured creditors may recover between 81 pence and 86 pence by the time the company is fully wound up, it said in an April report. Another payment may be made in the final three months of the year, it said. Ernst & Young’s Patrick Brazzill, Maggie Mills, Tom Burton and Alan Bloom were appointed to manage the firm in October 2008, after the island’s biggest lenders defaulted on about $85 billion in debt.

U.K. creditors include the Financial Services Compensation Scheme, a government-backed, industry-funded program that pays out when companies go bust; the U.K. Treasury and the charity Cats Protection League, Singer & Friedlander said.

The Financial Times reported the story earlier today.

-- Editors: Jon Menon, Keith Campbell

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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