MEETING OF CREDITORS AND REGISTERED SHAREHOLDERS 24 th June 2016

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Abel Samuel Cummings
5 years ago
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Fairfield Sentry Limited Fairfield Sigma

1 Fairfield Sentry Limited Fairfield Sigma Limited Fairfield Lambda Limited (in Liquidation) MEETING OF CREDITORS AND REGISTERED SHAREHOLDERS 24 th June 2016 Cayman Islands British Virgin Islands (EC) Bahamas Bermuda Guernsey London Cyprus (CIS/CEE) USA

2 Creditors and Investors Meeting Fairfield Sentry Limited (in Liquidation) Fairfield Sigma Limited (in Liquidation) Fairfield Lambda Limited (in Liquidation) Update and Next Steps KRyS-Global.com 2

3 Agenda 1 Welcome 2. Third party litigation: PWC & Citco 3. US Redeemer Actions 4. Cash Position 5. Distributions 6. Questions KRyS-Global.com 3

4 KRyS-Global.com 4

5 Timeline Lambda Appointment (23 Apr '09) BVI Redeemer Actions Commence (13 Oct '09) Picard settlement (8 Jul '11) Privy Council decision on PI (16 Apr '14) Farnum Decision (22 Oct '15) Citco Toll (25 Jan '10) Sigma & Sentry Appointment (21 Jul '09) Irish monies received (3 Mar '15) US Redeemer Actions Commence (7 Apr '10) PWC Claims initiated (30 May '12) Distribution expected (31 Oct '16) KRyS-Global.com 5

PriceWaterhouseCooper ( PWC ) Dutch proceedings: Re: Audit for Years ended 2003 to 2005 30 May 2012 Writ of Summons filed for unspecified damages in Amsterdam District Court.

6 PriceWaterhouseCooper ( PWC ) Dutch proceedings: Re: Audit for Years ended 2003 to May 2012 Writ of Summons filed for unspecified damages in Amsterdam District Court. 22 October 2015 Oral hearing. 13 July 2016 Decision scheduled. Canadian proceedings: Re: Audit for Years ended December 2006 to May 2012 Statement of Claim filed in the Ontario Supreme Court for breach of contract, negligence and negligent misrepresentation. Statement of Defence and counterclaims filed. 20 November 2015 Application for summary judgment by PWC. 29 April 2016 Response by JLs filed. Discovery on response currently being done. Fall 2016 Decision on summary judgement motion expected. KRyS-Global.com 6

7 Citco Bank Nederland ( CBN ) banker& custodian Citco Fund Services (Europe) BV ( CFSE ) administration Citco Global Custody ( CGC ) Registered shareholder January 2010 toll; extended numerous times, most recently to July Sharing of information and negotiation toward settlement ongoing. KRyS-Global.com 7

8 Claims Against the Funds Redeeming Investors Redeemer claims common law restitutionary claims, contractual claims and statutory avoidance claims Decision rendered by Privy Council on Preliminary Issues in April 2014, with a final order entered in October Remaining BVI redeemers are in the process of being discontinued. S273 application made by certain defendants in Heard in March Judgment received March 2016 dismissing application on various grounds. Applicants have appealed decision. Continued sanction to pursue US redeemer claims sought (only impacts costs). Declined April JLs have appealed. Settlement negotiations ongoing: Recoveries of US $28 million. Sharing agreement with SIPA Trustee: Recoveries of US $51 million. KRyS-Global.com 8

9 US Redeemer Actions By Jurisdiction Top 10 Countries by Shareholder Belgium France Cayman Islands Guernsey 51 Country Korea, Republic of United States Ireland 120 Switzerland 165 Luxembourg Netherlands No. of Shareholders KRyS-Global.com 9

10 US Redeemer Actions By Value 10 Largest US Redeemer Claims J I H G F E D C B A 1, ,000 1,200 1,400 1,600 1,800 Millions KRyS-Global.com 10

11 US Redeemer Actions US Connections Proportion of Defended Claims by Value 16% Proportion of Non Responded Claims by Value 22% US Connection No US Connection US Connection No US Connection 84% 78% ** Does not take into consideration claims against Citco entities. KRyS-Global.com 11

Cash Position Receipts and Payments July 2009

on SIPA Claim Non Madoff Investments MILLIONS

00 Cash Receipts 131.75 78.27 70.10 25.91 10.

SIPA Trustee Agreement Payment Liquidators

Legal Contingency Fees Allocated Redeemer

12 Cash Position Receipts and Payments July 2009 to 13 April 2015 Sentry RECEIPTS Distributions on SIPA Claim Non Madoff Investments MILLIONS Cash Receipts Cash Payments Net cash held: $157.98m Cash at liquidation date Redeemer Action Settlements SIPC Trusteee Subsequent Transferee Recoveries Other receipts PAYMENTS SIPA Trustee Agreement Payment Liquidators fees and expenses Legal fees and expenses Legal Contingency Fees Allocated Redeemer Action Settlements to SIPA Trustee Adverse costs Other costs ** Does not take into consideration costs incurred by Sentry, which are to be shared with Sigma & Lambda KRyS-Global.com 12

Cash Position Receipts and Payments July 2009 to 13 April 2015 Sigma MILLIONS 120.00 100.00 62.

60m Redeemer Action Settlements Other receipts PAYMENTS Legal Contingency Fees 40.00 41.59 7.59 Liquidators fees and expenses 20.

13 Cash Position Receipts and Payments July 2009 to 13 April 2015 Sigma MILLIONS RECEIPTS Cash at liquidation date SIPC Trusteee Subsequent Transferee Recoveries Net cash held: $97.60m Redeemer Action Settlements Other receipts PAYMENTS Legal Contingency Fees Liquidators fees and expenses Other costs Cash Receipts Cash Payments ** Does not take into consideration costs incurred by Sentry, which are to be shared with Sigma & Lambda KRyS-Global.com 13

14 Distributions Introduction Early 2014 BVI Court permitted JLs to explore distribution methodology and resolve issues. Issues o Unpaid Redemption Request Hearing June Settlement with 5 appearing applicants (approved earlier this month). Remaining claimants rejected as time to object expired. o o Indemnity Reserves Most issues resolved with Anwar settlements. Remaining risk can be quantified. Compromise of Inter Fund Claims Await pending s273 appeal. KRyS-Global.com 14

15 Distributions Adjudication of claims 138 claims received 64: Late redeemers 5 settled/59 rejected 3: Late subscribers in progress 5: Trade creditors/indemnity 3 admitted/2 in progress 1: Negligence/misrepresentation rejected 65: Registered Shareholders 38 accepted/27 rejected KRyS-Global.com 15

16 Distributions Following methodology will be applied Pay admitted trade creditors, indemnity & late subscribers in full plus interest (if applicable). Misrepresentation/negligence claim rejected if admitted will need to pay. No deferred creditors (as a result of settlements and court orders). Registered shareholders paid on per share basis. KRyS-Global.com 16

17 Distributions Share Register Total Registered Shareholders No US Claims US Claims Sentry Sigma Lambda 3 21 ** Includes Citco registered shareholders. KRyS-Global.com 17

18 Distributions No. of Registered Shareholders who are US Redeemer Defendants 5,000,000 Total Registered Shareholding 4,500,000 4,000,000 1,469,340 3,500,000 3,000,000 2,500,000 2,000, ,360 No US Claims US Claims 3,219,122 1,500,000 2,469,767 1,000, ,000 Sentry Sigma Lambda ** Includes Citco registered shareholders. 48, ,445 KRyS-Global.com 18

Distributions Projected Distribution Sentry Sigma Millions 200.00 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 157.94 23.99 Assets 60.57 57.86 29.

50 ASSETS Cash at bank Reallocation of shared costs COSTS RESERVES Misrepresentation / Negligence claim plus interest Farnum monies pending approval Projected other liquidation

19 Distributions Projected Distribution Sentry Sigma Millions Assets Costs Reserves Available for distribution: US$26.28m 7.50 ASSETS Cash at bank Reallocation of shared costs COSTS RESERVES Misrepresentation / Negligence claim plus interest Farnum monies pending approval Projected other liquidation costs Indemnity Reserve Millions Assets Costs Reserves Surplus reserved for statutory claims 7.50 ASSETS Cash at bank Distribution from Sentry COSTS RESERVES Reallocation of shared costs Projected other liquidation costs Indemnity Reserve KRyS-Global.com 19

20 Distributions Estimated timeline to distribution Current Adjudication and obtaining updated client information. September 2016 Assuming no appeals, seek Court direction re: distribution. October 2016 Distribution from Sentry. KRyS-Global.com 20

21 Any questions?

22 CONTACT CAYMAN ISLANDS Governors Square Building 6 23 Lime Tree Bay Avenue PO Box Grand Cayman KY Cayman Islands tel fax BERMUDA Chancery Hall 1st Floor 52 Reid Street Hamilton HM 12 PO Box 671 HM CX Bermuda tel fax CYPRUS (CIS/CEE) 5 Amathountos Street 5th floor Pirilides Building Limassol Cyprus tel fax BRITISH VIRGIN ISLANDS (Eastern Caribbean) Commerce House 2nd Floor 181 Main Street Road Town PO Box 930 Tortola VG1110 British Virgin Islands tel fax GUERNSEY La Plaiderie Chambers 3rd Floor La Plaiderie St Peter Port GY1 1WG Guernsey tel fax NEW YORK New York 57W 57th St. 4th Fl. New York NY USA tel fax BAHAMAS Caves Village Bldg 6, Upstairs Office 1 Blake Road and West Bay Street PO Box SP Nassau Bahamas tel fax LONDON 31 st Floor 40 Bank Street London E14 5NR United Kingdom tel e: John.Skelton@KRyS Global.com PHOENIX 3240 N.Delaware St. Chandler AZ USA tel fax KRyS-Global.com 22

KRyS GLOBAL. Joint Liquidators Analysis of Estimated Outcomes As at 30 June In respect of The Funds :

KRyS GLOBAL. Joint Liquidators Analysis of Estimated Outcomes As at 30 June In respect of The Funds : Joint Liquidators Analysis of Estimated Outcomes As at 30 June 2016 In respect of The Funds : Fairfield Sentry Limited Fairfield Sigma Limited Fairfield Lambda Limited (All in Liquidation) 29 July 2016