General Update - Application to Extend the Notice of Proposed Distribution to Unsecured Creditors - 30/11/2010

On 4 December 2009, the Joint Administrators issued a Notice of Proposed Distribution requesting that unsecured and preferential creditors lodge proofs of debt by 31 December 2010 in order to qualify for a dividend which would be paid by no later than two months later.

As explained in the Joint Administrators' fourth progress report dated 14 October 2010 (the "Progress Report"), owing to the impact of the Court of Appeal's recent judgment with respect to Client Money, the Joint Administrators cannot now make this dividend payment as intended. Consequently, the Joint Administrators will shortly apply to the High Court to extend the date by which proofs must be lodged, and the proposed dividend payment date, by two years.

This is a "long stop" date to avoid, as far as possible, the need for subsequent Court extensions.   However, the Joint Administrators hope to shorten this timetable and will seek to agree claims in the interim period following the Consensual Approach as set out in the Progress Report.  In addition, if and when sufficient clarity on the impact of the Client Money judgment can be obtained, the Joint Administrators will seek to bring forward the timetable for payment of a dividend, and the date to lodge proofs of debt.

Accordingly, the Joint Administrators request that creditors continue to submit proofs of debt as soon as is possible (if they have not already done so), in order that their claims can be agreed in a timely manner and, if and when the timetable is accelerated, they qualify for dividend payments.

When the Joint Administrators are made aware of the Court's decision as to whether it will accede to this application, a notice confirming the revisions to the deadlines and timetable will be posted on the PwC LBIE website and an email will be sent to counterparties alerting them of such posting.

Until such time as the Court's decision is made, and it is confirmed otherwise, the date for lodging proofs of unsecured and preferential claims remains 31 December 2010.

Should you have any further questions, please do not hesitate to contact the Communications and Client Management team on unsecuredcreditors@lbia-eu.com.