Update in relation to the second LBIE admitted claims auction - 7 July 2016

The Joint Administrators have followed developments concerning the immediate impact of the UK’s “Brexit” vote on LACA II.  In particular, the movements in the currency markets may have a bearing on the final outcome of the auction itself and the value recovered by participating creditors. 

It is important to be aware that:   

• The potential entitlements for non provable currency conversion claims and associated interest on such claims were calculated using 29 April 2016 FX rates (1.4650 for USD /GBP and 1.2791 for EUR/ GBP).  If these amounts were to be recalculated on current spot rates of exchange, then they would be worth more on a GBP basis; 
• The discounts applied to calculate the reserve prices were set as a percentage of the level of potential entitlements as at 29 April (20% for the USD pool and 17% for the EUR pool) and would be greater if calculated on updated values; and 
• Proceeds from LACA II will be remitted to participating creditors in GBP. 

Notwithstanding the above and the forthcoming judgment for Waterfall II Tranche C which is expected this month, the Joint Administrators intend to proceed with the current timetable unchanged for the LACA II. 

The deadline for acceptance remains at 5pm (London time) 14 July 2016.

This announcement should be read in conjunction with the LACA II Terms and Conditions.