Creditor Update – third interim distribution to unsecured creditors – 9 October 2013

The Administrators are now in a position to provide creditors with further information on the anticipated timing of the third interim distribution to unsecured creditors.

In summary, we explain in this update that:

1. it is currently anticipated that the third interim dividend will be paid on or around 29 November 2013; and
2. the last date for agreement of claims for inclusion in the third interim distribution will be 31 October 2013.

Third interim distribution to unsecured creditors

The Administrators’ tenth progress report dated 11 October 2013 will shortly be sent to all known creditors. Given the progress achieved in the period set out in the report, it is our intention to pay a third interim dividend before the end of 2013. Unsecured creditors should be aware, however, that, to allow sufficient time for inclusion in this dividend payment, creditors will need to have their claims agreed and admitted by 31 October 2013, if they have not already done so.

The rate of the third interim dividend will be determined immediately prior to its declaration, taking into account any further receipts and reduced reserves following any further settlements achieved with counterparties, as well as further rejections of claims to that date.

Pursuant to Rule 2.95 of the Insolvency Rules 1986, all creditors known to the Administrators are being sent by post today a notice of intention to declare a dividend. This highlights that:

• the last date for proving of debts will be 31 October 2013; and
• a third interim dividend will be payable no later than 31 December 2013, albeit the current intention is to make payment on or around 29 November 2013.

Pursuant to Rule 2.98 of the Insolvency Rules 1986, all creditors that have submitted a Proof of Debt (excluding rejected claims) will receive a written notification from the Administrators either prior to or at the time of the third interim dividend setting out further information, including: (i) the dividend rate; (ii) the total amount of the dividend being distributed; and (iii) the level of reserves for unsettled claims.

Other matters

Creditors should note that:

• to be eligible to receive the third interim dividend, at the start of November 2013 every unsecured creditor with an admitted claim must confirm its GBP Standard Settlement Instructions (“SSIs”) and that it still owns the claim via LBIE’s Client Information Portal; and
• any unsecured creditor who has yet to submit a Proof of Debt via the LBIE Client Information Portal is encouraged to do so as soon as practicably possible.

For all queries relating to the content of this update, please contact your existing LBIE contact or the Communications and Counterparty Management team at unsecuredcreditors@lbia-eu.com.