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18.12.2009

Singer & Friedlander Funding Plc (in administration)

TO ALL KNOWN CREDITORS
Singer & Friedlander Funding Plc (in administration)
High Court No.: 9081 of 2008
Registered No.: 05084823
Registered office: 1 More London Place, London SE1 2AF

Court judgment - announcement

As previously announced, the joint administrators (the KSF Administrators) of Kaupthing Singer & Friedlander Limited (in administration) (KSF) applied to the High Court to seek directions as to whether or not they were entitled to rely on the rule in Cherry v Boultbee 4 My & Cr 442 (as applied in SSSL Realisations (2002) Ltd v AIG Europe (UK) Ltd [2006] All ER (D) 98) in respect of a claim (the Claim) made by Singer & Friedlander Funding Plc (in administration) (Funding) against KSF for the payment of an intercompany debt. HSBC Trustee (C.I.) Limited (as the trustee of the £250m floating rate guaranteed notes issued by Funding, the Trustee) appeared as respondents to the application.

The application was heard by the Chancellor of the High Court and took place on 8 and 9 December 2009. The High Court has today handed down its judgment which confirms that the KSF Administrators are entitled to rely on the rule in Cherry v Boultbee. The Funding Administrators have been advised by their legal advisers that, on the basis of the High Court’s decision, Funding will not receive a dividend in respect of the Claim.

The Trustee sought and was granted permission from the High Court to make a “leapfrog” appeal to the Supreme Court. The Trustee argued that such an appeal was necessary as the Court of Appeal would be bound to follow the earlier judgment of SSSL Realisations. The Trustee must now also seek the permission of the Appeals Panel of the Supreme Court within one month. The Funding Administrators understand that if the Appeals Panel does not grant its permission then the Trustee may still be eligible to seek leave to appeal to the Court of Appeal in the usual way.