28 January 2005

This is the thirteenth public statement we (the FSA) have made about KF Concept. It is an update on the position reached in the bankruptcy proceedings against Kevin Foster.

Bankruptcy petition hearing

On 20 January 2005, we attended a pre-trial review before Registrar Baister, who gave directions for the hearing of the bankruptcy petition against Mr Foster. We have attached a link to the Court Order given by Registrar Baister to this statement.

The Registrar ordered that the clerks to Counsel representing Mr Foster and the FSA appear before the Court's Listing Office by 27 January 2005 to fix a four-day trial for the hearing of the petition before a judge in the Chancery Division of the Royal Courts of Justice, The Strand, London. The earliest date that is convenient for the Court and respective Counsel is 27 June 2005. However, the exact day and time for the start of the hearing will depend on other cases before the Court at that time being completed.

Filing of evidence

On 22 December 2004, Mr Registrar Nicholls ordered that, unless Mr Foster filed and served his written evidence opposing our bankruptcy petition by 4.30pm on 7 January 2005, he would be debarred from filing further evidence. We set this out in our statement of 11 January 2005.

Mr Foster has applied to the Court to lift that sanction so he can file further evidence (in addition to that already served on 7 January 2005). At the pre-trial review, Registrar Baister said he will hear Mr Foster's application on 4 February 2005 at 12:30pm. That hearing will not be in open Court.

Individual Voluntary Arrangement

Recently, Mr Foster has indicated to us that he intends entering into an Individual Voluntary Arrangement (IVA) with his creditors. This type of arrangement is not a procedure under the Financial Services and Markets Act 2000, but is governed by the Insolvency Act 1986.

We are willing to hold discussions with Mr Foster's representatives about his intention as regards an IVA and, if made, his formal proposal for an IVA. We will continue to consider whether the bankruptcy proceedings are appropriate in the light of any such developments. Based on current information, we presently believe that the bankruptcy petition proceedings should continue.

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