Progress for charities with funds in failed Icelandic banks

Cats Protection and others could receive at least half their money back

Cats Protection has responded cautiously to indications that creditors of the collapsed Icelandic bank Kaupthing Singer & Friedlander are likely to be able to recoup at least half their lost savings.

The charity had £11.2m invested in the bank when it collapsed last October. It has seen an advance copy of a six-month report by the bank's administrators, Ernst & Young, which predicts that investors will be able to recover a minimum of 50 per cent of their funds, but warns that the process could take up to four years.

Dominic Sullivan, director of legal services for Cats Protection, said: "We would view any such estimate with caution as this is a very early stage of a process that may take many years and be significantly affected by market forces."

He said that the charity's primary focus would continue to be lobbying the Government to take up the recommendation of the Treasury Select Committee to compensate charities for their losses with public funds.

"We are hoping the Government acts on this recommendation as soon as possible and are awaiting a decision in June," he said.

Children's hospice Naomi House, which has £5.7m tied up in KSF, and Christie's, the Manchester children's hospital that lost £6.5, were both unable to comment before publication of Third Sector Daily.

Administrators for Heritable Bank, the UK arm of the Icelandic bank Landsbanki, have indicated that its creditors could recover up to 80p in the pound.

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