Claim Transfers
If individual creditors wish to make their own arrangements during periods when the Winding-Up Committee stops recognizing transfers, they will do so at their own risk. Notwithstanding any purported transfer of a claim, in such a case, it is the original claimant that will be paid and a private transaction will not create any rights of action against the Winding-Up Committee.
In addition, the Winding-Up Committee reserves the right to make any payment to the original claimant, notwithstanding any purported transfer of a claim, if the Winding-Up Committee is not satisfied that the procedures set forth in the FAQs have been complied with and / or the submitted documentation does not provide satisfactory evidence of the transfer, new ownership, or account information for the new owner of the claim.
After the transfer of a claim pursuant to the procedures described in this FAQ 4 below, the position underlying the claim will remain blocked and held by the beneficial owner who obtained the blocking number. That beneficial owner will remain responsible for any fees incurred in connection with the maintenance of the position.
Claim Transfer Request Forms and related materials should be sent to:
Winding-Up Committee of Kaupthing hf
c/o Epiq Bankruptcy Solutions, LLC
777 Third Avenue, 12th Floor
New York, NY 10017
U.S.A.
Attn: Kaupthing Claim Transfer Agent
Or
Winding-Up Committee of Kaupthing hf
c/o Epiq Systems Ltd.
11 Old Jewry, 4th Floor
London EC2R 8DU
Attn: Kaupthing Claim Transfer Agent
If the Claim Transfer Request Form and signature verification documents submitted are deemed defective by the Winding-Up Committee, the transfer parties will be notified of such defects via e-mail and they will have ten (10) days from the date of the e-mail to submit corrected documents. The parties will be requested by Epiq to confirm receipt of the e-mailed Notice of Defective Transfer. Confirmation e-mails should be sent to Epiq at kaupthing@epiqsystems.com. An auto-generated reply e-mail will not be sufficient to confirm receipt. In the absence of confirmation within two (2) New York business days of the date of the e-mailed Notice of Defective Transfer, Epiq will send hard copies of the Notice of Defective Transfer to each party that did not confirm receipt. A properly completed Claim Transfer Request Form that is not accompanied by valid signature verification documentation or is missing payment of the Administrative fee on the date the hard copy Claim Transfer Request Form is received will also be considered defective.
If the transfer parties fail to cure all defects within the ten (10) day cure period, the transfer will be deemed “withdrawn” and the parties will receive a Notice of Withdrawn Transfer sent via e-mail. If the parties submit corrected documents within the ten (10) day cure period but the transfer is still defective, the ten (10) day cure period will continue to run until either the transfer defects have been fully cured or the cure period expires and the transfer is withdrawn. If the transfer is withdrawn for failure to cure the necessary defects, the only way to continue with the requested transfer would be to submit a new claim transfer request form and Administrative Fee. Administrative Fees previously paid for withdrawn transfers will not be credited.
The Winding-Up Committee will not recognize concurrent transfers of claims. A transfer of a claim or portion thereof must settle – i.e., the Notice of Successful Transfer must be issued by Epiq- before that claim or portion thereof can be traded again (in whole or part).
Parties to a requested claim transfer that is determined by the Winding-Up Committee as properly submitted will receive a Notice of Proposed Transfer. Parties to a proposed transfer will have ten (10) days from the date of service of such notice to object to the transfer. Notice of a proposed claim transfer will be sent via e-mail, with a hard copy sent via overnight mail to both parties to the proposed transfer only if a reply e-mail confirming receipt is not received from each party within two (2) New York business days from the date of the e-mail notice. An auto-generated reply e-mail will not be sufficient to confirm receipt. The date of service of the notice – and of the commencement of the ten (10) day objection period – will be the date on which the notice was sent by e-mail, regardless of whether a hard copy of the notice is sent.
During the period of ten (10) days, both parties to the transfer may waive the objection period. In order to do so, Epiq must receive an email from both the Transferor and the Transferee at kaupthing@epiqsystems.com stating that they wish to waive the objection period. Upon receipt of both waiver emails, the objection period will be shortened from ten (10) to three (3) days from the date of the last waiver email. Two (2) New York business days after the expiration of the shortened objection period the transfer will be recognized by the Winding-Up Committee and Epiq will issue the Notice of Successful Transfer via e-mail to both transfer parties.
Upon receipt of an objection from the transferor and/or transferee to the proposed transfer, the proposed transfer will be deemed “withdrawn” by the parties.
Absent an objection during the ten (10) day period, or if during that period both parties agree to waive the objection period, the transfer will be deemed “successful” two (2) New York business days after the expiration of the objection period or, if applicable, two (2) New York business days after the expiration of the shortened objection period. The Winding-Up Committee will notify the transferor and transferee of the successful claim transfer by sending a Notice of Successful Transfer to the parties via e-mail. After the Notice of Successful Transfer has been issued, the transferee will be listed as the new holder of the entire claim (in the case of a full claim transfer) or the holder of a portion of the claim (in the case of a partial claim transfer). In the case of a partial claim transfer, the Winding-Up Committee will update the existing claim record to reflect the new pro-rata portions owned by both the transferor and transferee.
A person (such as an agent, trustee, paying agent, clearing agent, lawyer or other adviser) may assert a claim on behalf of another. In order to effectuate a transfer of a claim asserted in this manner, such person must be the party that signs the Claim Transfer Request Form as the proposed transferor of the claim.
The Claim Transfer Request Form and acceptable Signature Verification Forms are available on the www.kaupthing.com website.
The Claim Transfer Request Form requires that the transferor and transferee specify whether the claim to be transferred is for the full amount of the asserted claim or a partial amount of the asserted claim. In the case of a partial claim transfer, the total amount of the “original” claim, the current amount of the “original” claim owned by the Transferor, and the partial amount of the claim that is requested to be transferred must be stated. Upon the successful completion of a partial claim transfer, the Winding-Up Committee will update the existing claim record to reflect the new pro-rata portions owned by both the transferor and transferee. Given the increased burden on the Winding-Up Committee to administer and track partial claim transfers of a single claim, the fee required to effectuate a partial claim transfer is $4,000 for each partial transfer.
Please note, any transfer for less than 100% of the claimed amount as originally filed is a partial transfer. Multiple partial transfers of a claim may not be combined to yield a full transfer under any circumstances. Furthermore, once a claim is traded in part, the resulting piece of the claim is treated as a new, unique record by the Kaupthing claim system and cannot be combined with any other pieces of that claim. A partial transfer will always remain a partial, in essence "once a partial, always a partial".
According to Article 30 (4) of the Act on Bankruptcy etc., a creditor who possesses more than one claim against the debtor has assigned such a claim to another party three months before the reference date or later, the claims, added together, shall also be regarded as one composition claim, but the assignee shall be entitled to a share of the composition claim in proportion to his share. The same procedure shall be applied in the event of any other transfer.
Beneficial owners who filed individual claims were required to obtain a VOI or “blocking number” through DTC for their position prior to filing their claims to provide proof of beneficial ownership and prevent trading of their positions in the Global Notes. Although the Winding-up Committee has not authorized the unblocking of those positions underlying these individual claims and notwithstanding the fact that the beneficial owners claims have ultimately been rejected as described further on the Kaupthing website (www.kaupthing.com), the committee has established a process that enables the beneficial owners who filed individual claims to transfer their share in the global claim without disrupting the blocked positions. This process is designed to help ensure that any distributions from the Kaupthing estate reach the correct claimant, whether that would be the one who filed the claim or any subsequent transferee.
The Winding-up Committee has now authorized the transfer of such claims, under the guidelines provided herein. If you wish to trade your claim arising under the U.S. Medium-Term Note Program, you must;
(a) complete the Claim Transfer Request Form ,
(b) complete signature verification documents as described under question 4 above and pay the Administrative Fee,
(c) comply with the following procedures:
1. For the initial transfer only, obtain an executed copy of the form of letter available at www.kaupthing.com (the “Original Participant Letter”) from the direct participant (also known as broker or custodian) with DTC who instructed DTC to block your position through DTC’s Automated Tender Offer Program (“ATOP”). Please note that if you hold your U.S. Medium-Term Notes through another depository, such as Euroclear or Clearstream, the Original Participant Letter must be from the DTC Participant that blocked the position for Euroclear or Clearstream, and NOT your participant at such other depository. All involved DTC Participants are being provided additional technical information regarding the completion and submission of the Original Participant Letter upon request from their clients.
2. Submit a copy of the Original Participant Letter (for the initial transfer only), along with a completed Claim Transfer Request Form, signature verification documents, and Administrative Fee to:
Winding-Up Committee of Kaupthing hf
c/o Epiq Bankruptcy Solutions, LLC
777 Third Avenue, 12th Floor
New York, NY 10017
U.S.A.
Attn: Kaupthing Claim Transfer Agent
Or
Winding-Up Committee of Kaupthing hf
c/o Epiq Systems Ltd.
11 Old Jewry, 4th Floor
London EC2R 8DU
Attn: Kaupthing Claim Transfer Agent
Failure to satisfy each of the above requirements with respect to a transfer of a claim arising under the U.S. Medium-Term Note Program will result in the Winding-up Committee’s non-recognition of any transfer of such claim for purposes of distribution.
The Administrative Fee for the transfer of a claim arising under the U.S. Medium-Term Note Program is the same as the Administrative Fee for the transfer of any other claim. The Administrative Fee covers the administrative costs incurred by the Winding-up Committee and Epiq. Any charges imposed by DTC, the Participant or any other party will be the responsibility of the transfer parties.
As with all other transfers of claims lodged against Kaupthing, after the transfer of a claim arising under the U.S. Medium-Term Note Program pursuant to the procedures described in this FAQ 8, the position underlying the claim will remain blocked and held by the beneficial owner who obtained the VOI or “blocking number.” That beneficial owner will remain responsible for any fees incurred in connection with the maintenance of the position. For further information, please see FAQ 3 (May I unblock my position once I have traded my claim?).
Epiq Bankruptcy Solutions, LLC
Attn: Kaupthing Transfer Agent
777 Third Avenue, 12th Floor
New York, NY 10017
U.S.A.