How did the Independent Valuer reach his final determination?
The amount of any compensation payable by HM Treasury was based on the value of the shares (or the right to receive shares) immediately before the transfer of Northern Rock into temporary public ownership at the beginning of 22 February 2008. This point in time was referred to as the Valuation Date. The Independent Valuer determined that there would be no surplus at the end of an assumed administration for distribution to shareholders. It therefore followed that there was no value in the shares (or the right to receive shares) as at the Valuation Date and that no compensation was payable to former shareholders or to those whose rights to receive shares were extinguished when Northern Rock was transferred into temporary public ownership.
