There's confirmation the liquidator of collapsed bank Kaupthing Singer and Friedlander is in talks over a possible sale of parts of the business.

Mike Simpson was appointed Liquidator Provisional last Thursday when the bank was declared insolvent.

In an announcement today (Tuesday), he says he's instructed lawyers in the London and Iceland to help retrieve what assets he can.

In the latest statement on the bank's website, Mr Simpson tells customers preliminary negotiations are underway with parties interested in purchasing the business and loan book.

Lawyers have been appointed to assist in claiming KSF assets in London and Iceland, the home of the parent bank.

Mr Simpson also confirms the directors and existing management structure remains in place to assist with day-to-day operations.

For borrowers, their mortgage and loan agreements remain in place - the advice is, payments should continue as normal and there's no need to refinance.

Mr Simpson promises to update the website as matters progress.