Financial litigation

Claims concern alleged breaches of the underlying loan documentation and in addition allegations concerning the acquisition of Somerfield Plc (and its subsequent disposal)and various other transactions entered into by the Manx subsidiary in the lead up to the 2007 banking crisis encompassing allegations as to Kaupthing hf’s relationship with the corporate structures of the Tchenguiz brothers. Currently English and Isle of Man Schemes of Arrangement pursuant to the Companies Act 2006 and the Companies Act 1931 are proposed in respect of the liquidation of the Manx subsidiary under which the total value of challenged transactions through the course of the extant litigation is worth circa £500 million to the company’s estate.