I think that the funds are there and are confirmable, but it serves KD right now to purposefully throw roadblocks in the process. That even was referred to in LCs letter.
Holding up expense reports for example, would prevent (since the expenses are significant) the closing of the books for 2009. In terms of confirming the money with RIC, he could be asking for additional confirmations, such as underlying securities in the Hedge Fund balances and asking for interim audited statements for the funds---which they will not provide since most entities only have unaudited interim statements as an example.
I also believe the past statements are okay, just waiting for the auditors to release---how would you hold that up, Perhaps by not paying the bill. All kinds legal tricks to delay release of information and I think KD is attempting to delay to keep his position as King of the Hill and hoping to outwait his opponents.
It just seems to me that a staring contest is in the works between the parties and KD is buying time by doing so. Of course KD now gets to hire consultants to do this work and having the ability to grant contracts for this work is what is left of his power base. Sad but this will all resolve itself when KD is damn good and ready---until then he acts like a white knight (who just shit in his armor and the stink is contained)
