Joint administrators Lee Manning, left, and Rick Garrard. (Photo montage by Steve Sarre, 0656987)

LANDSBANKI Guernsey’s administrators confirmed yesterday that customers were unlikely to receive all of their money back.

While Rick Garrard and Lee Manning, who said customers could receive an initial repayment of 30p in every pound deposited with the bank, were confident they could see a ‘significant realisation of cash’ from the debts, they said it was in doubt whether that would be enough for full repayment.

If the administrators were able to recover all the bank’s assets, it would be more than £22m. in profit after paying all its liabilities. But that remains uncertain.

‘The collapse of Heritable Bank and other uncertainties have now placed greater doubt on the ability of the bank [Landsbanki] to recover sufficient assets to pay depositors in full,’ they said.

Heritable, also put into administration last week, owed Landsbanki Guernsey more than £36m.

But the UK Government froze its assets and Dutch bank ING Direct has taken on its savings business – so it is unclear how much the administrators will be able to have released back to the Guernsey bank.