Update – Announcement of first Scheme Distribution in relation to the scheme of arrangement, pursuant to Part 26 of the Companies Act 2006 – 25 July 2018

Further to the announcement published on 2 July 2018 (a copy of which can be accessed here), the Joint Administrators are pleased to confirm that a first Scheme Distribution of over £4.03 billion (after provision of £0.97 billion for withholding tax) has been made to Scheme Creditors entitled to Statutory Interest pursuant to the terms of the Scheme. 

All Scheme Creditors who have received this first Scheme Distribution should now have received confirmation of the amount paid to them. 

The Joint Administrators have also made adequate reserves in respect of matters that may subsequently result in sums being payable by LBIE, including:

• Statutory Interest payable to those Scheme Creditors who are yet to provide adequate Settlement Instructions and / or KYC Information, and to whom payment will be made by way of further distributions once the necessary information is provided;
  

• the twelve Certification Claims received by LBIE, which are expected to be resolved by no later than the end of the year, following which payment to the relevant Scheme Creditors of their determined Statutory Interest entitlements will be made; and

• around ten Undetermined Provable Claims, including two claims submitted prior to the Bar Date by German state authorities in relation to alleged tax-motivated “cum/ex” transactions undertaken pre-Administration, which are in the process of being reviewed by the Joint Administrators and will be adjudicated in due course. 

Further information in relation to withholding tax was set out in the announcement published on 18 April 2018 (a copy of which can be accessed here), and further updates will be made in due course.  Please note the Joint Administrators are currently unable to provide any updates from HMRC in relation to the timing of responses to applications for clearance.  

Except for the above, the Joint Administrators do not expect to make any further announcements in relation to LBIE’s administration or the Scheme in the near future, and a simplified progress report will be published in mid October.

The Creditors’ Committee also held its final meeting by telephone last week and the Operating Committee is now effective. The Joint Administrators are very grateful for the Creditors’ Committee’s contribution to the Administration over such an extended period of time.

Unless stated otherwise, defined terms in this announcement have the meaning given to them in the Explanatory Statement.  

If you have any questions in relation to the above, please contact the Joint Administrators by email to schemequeries@lbia-eu.com.