Cash position

Attached is the summary of balances held at 30 April 2010.

 Cash summary 30 April 2010

Loan book

Attached is the summary of the loan book at 30 April 2010.

 Loan book summary 30 April 2010

We have purchased currency options to hedge certain of the future foreign currency loan receipts. Due to the weakening of sterling during April, options purchased to hedge Euro receipts were 'in the money' at 30 April 2010, protecting the value of the company's future receipts to the extent of approximately £1.2million.

Claim against KSFUK

Negotiations continue with the Administrators of KSFUK regarding the agreement of our claim. The amount of £205million has currently been agreed, however, we are in discussions in order to agree a higher amount.

The Administrators of KSFUK have so far paid us three distributions totalling £71,750,000, being 35% of the agreed portion of our claim. They have also indicated their intention to pay a fourth distribution in July 2010 of not less than 5%. If we are able to agree our claim at a higher amount, we will receive a catch up payment for the balance.

Next distribution

After 31 May, funds which we have had to retain following the sale of shares last year become unrestricted. In early June, we will review the cash position with a view to declaring a third distribution for unsecured creditors, to be paid in early July. We anticipate the distribution will be at least 10%, however the exact amount will depend upon the level of cash receipts during the intervening period.

Contacts

The best way to make contact is to write to the bank or email branch@singers.co.im. If you need to telephone the bank, please use the main switchboard number +44 1624 699222.

Mike Simpson

Joint Liquidator