Important Creditor Update - 31 January deadline for “catch up” unsecured dividend and Small Claims Settlement Offer

On 9 November 2012 the Joint Administrators announced their intention to:

1. pay a “catch up” first interim unsecured dividend of 25.2% (consistent with the first interim unsecured dividend); and
2. re-issue the Small Claims Settlement Offer (the “SCSO”) for creditors whose claims were not admitted in time to participate in the first interim unsecured dividend or the initial SCSO.

The deadline for creditors wishing to participate in either the “catch up” dividend or the SCSO payment is 31 January 2013. For further information on each, please see below.

“Catch up” unsecured dividend

The “catch up” unsecured dividend of 25.2% is available to creditors who missed the 2 November 2012 deadline for participating in the first interim dividend and whose unsecured claims have since been admitted.

To be eligible to receive a “catch up” dividend in February 2013, unsecured creditors must have met the following conditions by 31 January 2013:

• submit a valid Proof of Debt via LBIE’s Client Information Portal;
• have their unsecured claim agreed and admitted via an executed claims determination deed (“CDD”) (or similar agreement); and
• provide LBIE with their standard settlement instructions (“SSIs”) for a GBP bank account.

SCSO

The SCSO is available to any creditor whose agreed claim does not exceed £150,000 (or who wishes to cap their claim at this level) and who has not received the first interim dividend. In full and final settlement of their claim, LBIE is offering to pay such creditors 90% of their agreed claim amount, up to a maximum payment of £135,000 (being 90% of £150,000).

Please note the SCSO is available to Client Money claimants who, as part of accepting the SCSO, agree to relinquish their Client Money claim by waiving it or assigning it to a nominee of LBIE.

SCSO payments will also be made in February 2013 and therefore creditors wishing to participate in the SCSO must by 31 January 2013:

• meet all the requirements listed above under “catch up” unsecured dividend; and
• enter into an additional agreement with LBIE accepting the SCSO as full and final settlement of their admitted claim.

Creditors who have not already advised LBIE that they wish to participate in the SCSO are advised to register their interest as soon as possible. This can be done by either:

• logging onto LBIE’s Client Information Portal and registering interest by clicking the button under the relevant heading; or
• emailing smallclaimsoffer@lbia-eu.com; or
• contacting an existing LBIE contact.

Further information is available in the SCSO Frequently Asked Questions.

Should you have any queries regarding the SCSO please email smallclaimsoffer@lbia-eu.com. For all other 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.

Please note that submission of a valid Proof of Debt does not guarantee that the claim will be capable of agreement prior to the 31 January 2013 deadline.