How has the Independent Valuer reached that provisional view?
The amount of any compensation payable by HM Treasury to former shareholders and to those who had the right to receive shares is based on the value of the shares or rights to receive shares (as the case may be) immediately before the transfer of Northern Rock into temporary public ownership. This point in time is referred to as the Valuation Date. When undertaking that assessment, the Independent Valuer must apply the statutory valuation assumptions set by the Banking (Special Provisions) Act 2008 and the Northern Rock plc Compensation Scheme Order 2008. The Independent Valuer has considered the assets that would need to have been realised to repay the Bank of England, as it must be assumed that as at the Valuation Date all financial assistance provided by the Bank of England or HM Treasury has been withdrawn. The consequence of the withdrawal of financial assistance, together with the further statutory valuation assumptions (that Northern Rock is in administration and unable to contin
