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Creditors Meeting

On Thursday, 23 October 2014, at 9:00 am, a meeting will be held with creditors in the winding-up proceedings of LBI hf. (formerly Landsbanki Íslands hf.), Reg. No. 540291-2259, at Hotel Reykjavik Natura, Nautholsvegi 52 in Reykjavík.

The meeting was announced in the last creditors’ meeting, which was held on 12 March 2014. Furthermore the meeting has been publicized in the Official Journal in accordance with the third paragraph of Article 79 of the Act on Bankruptcies etc. No 21/1991.

Meeting agenda:

  • Meeting called to order, selection of chairman and secretary for the meeting.
  • Status of the winding-up proceedings and material developments since the last creditors’ meeting.
  • Financials as at Q3 2014.
  • Claims list and status of disputed claims.
  • Settlement agreements with Landsbankinn hf.
  • Discussion and Q&A.
  • Settlement agreements with Landsbankinn hf. – continued.
  • Meeting adjourned and announcement of next creditors’ meeting.

In other respects the meeting is held in accordance with the respective provisions of the Act on Bankruptcies etc. The meeting will be held in Icelandic with English interpretation available. Entitled to attend the meeting are those parties who have lodged claims against the bank which have not been finally rejected or parties to whom such claims have been lawfully assigned.

Extension and Amendment of Landsbankinn bonds- new deadline for completion

Yesterday, September 30, Landsbankinn and LBI agreed to extend the deadline for completion of the extension and amendment of the Landsbankinn bonds to October 24, 2014.

LBI received a letter on September 30 from the CBI stating that they would not be able to provide a response to LBI’s conditions precedent to completion regarding certain exemptions to capital controls by the September 30 deadline.

Given the materiality of the Landsbankinn bonds and with reference to paragraph three in Article 103 of the Act on Financial Undertakings No. 161/2002, the Winding-up Board extended the deadline in order to discuss the circumstances and conditions related to the terms of the extension and amendment agreement at the next Creditors Meeting on October 23. According to revised terms if the transaction is not completed by October 24, the amendment agreement between LB and LBI will terminate.

LBI hf. financial information for Q2 2014

The Winding-up Board of LBI hf. hereby presents the Financial Information for Q2 2014.

Please note that this financial information contains information relating to an additional exemption request to the Central Bank of Iceland for partial payments to priority creditors made this September 2014 (slide 5).

LBI hf. financial information for Q1 2014

The Winding-up Board of LBI hf. hereby presents the Financial Information for Q1 2014.

Financial Information for Q1

Announcement from LBI hf.

LBI hf. and Landsbankinn hf. have reached an agreement on amending the terms of bonds issued by Landsbankinn hf., following discussions requested by Landsbankinn hf. The bonds were issued in December 2009 in relation to the settlement agreements between the two parties. The outstanding balance of the bonds is now equivalent to approximately ISK 226 billion. According to the agreement, the repayment period is to be lengthened by 8 years and the final payment date will be in October 2026 instead of October 2018. The new terms will become effective when certain conditions set by LBI hf. concerning exemptions from capital controls have been granted.

Announcement from LBI hf.

A definitive agreement has been signed by shareholders representing about 89% of the equity of Highland Group Holdings Ltd (House of Fraser) to sell their shareholding in the company to the Chinese company Nanjing Xinjiekou Department Store Co., Ltd (Nanjing Cenbest).

The Icelandic company BG Holding ehf., which is subject to administration in the UK, has 34,9% of the shares. They were all pledged to LBI by way of a share charge. The transaction was done in consultation with the Winding-up Board of LBI who expects to recover the net value of these shares, likely to be in the region of 40 million GBP, in due course. This successful sales process was led by the chairman of House of Fraser, Donald McCarthy.

News announcement from LBI hf. - Creditors Meeting

The Winding-up Board of LBI held a Creditors' Meeting today, 12 March 2014.

Financial Situation of LBI hf.

At this meeting the Winding-up Board presented information to creditors on the estimated value of LBI's asset portfolio as of 31 December 2013 (Q4).

It was stated that cash held by LBI increased in real terms by ISK 93 billion from Q3 2013 and amounted to almost ISK 318 billion at year-end.

It was also pointed out that the estimated value of LBI's assets had increased in real terms by around ISK 2 billion from Q3.

Including four partial payments, equivalent to around ISK 716 billion, LBI's estimated recoveries as of 31 December 2013 were equivalent to ISK 1,534 billion.

The total estimated value of LBI's assets has therefore increased by the equivalent of ISK 434 billion during the period from 30 April 2009 until year-end 2013.

It could be mentioned that estimated recoveries as of year-end 2013 are equivalent to around ISK 208 billion higher than the amount of recognised priority claims in the winding-up proceedings.

Partial payments (Interim distributions)

The Winding-up Board announced that the total of all partial payments and lump sum payments made as of the end of last year was equivalent to just under ISK 716 billion, or to 53.9% of the total amount of priority claims as of year-end. Two requests for exemptions from capital controls for payment of ISK 265 billion in further partial payments proposed by the Winding-up Board are being discussed by the Central Bank of Iceland.

Creditors Meeting

On Wednesday, 12 March 2014, at 9:00 am, a meeting will be held with creditors in the winding-up proceedings of LBI hf. (formerly Landsbanki Íslands hf.), Reg. No. 540291-2259, at Hotel Reykjavik Natura, Nautholsvegi 52 in Reykjavík.

The meeting was announced in the last creditors´ meeting, which was held on 2 October 2013. Furthermore the meeting has been publicized in the Official Journal in accordance with the third paragraph of Article 79 of the Act on Bankruptcies etc. No 21/1991.

Meeting agenda:

  • Meeting called to order, selection of chairman and secretary for the meeting.
  • Status of the winding-up proceedings and material developments since the last creditors' meeting.
  • Financials as of year-end 2013.
  • Claims list and status of disputed claims
  • Matters concerning Landsbankinn hf.
  • Partial payments to creditors and related matters.
  • Discussions and Q&A.

In other respects the meeting is held in accordance with the respective provisions of the Act on Bankruptcies etc. The meeting will be held in Icelandic with English interpretation available. Entitled to attend the meeting are those parties who have lodged claims against the bank which have not been finally rejected or parties to whom such claims have been lawfully assigned.

Supreme Court verdicts on voiding cases

On January 16, the Supreme Court of Iceland reached verdicts in 5 cases related to voiding actions taken by LBI hf. against four counterparties in cases nrs. 191/2013, 356/2013, 359/2013, 412/2013 and 413/2013.

The Supreme Court ruled that conditions for voiding were not considered met following the Resolution Committee's appointment based on that LBI hf. was from that time in a position which can be equated with one where liquidation of its estate has commenced.

The Winding-up Board of LBI hf. undertook voiding actions against sixteen foreign financial institutions and three Icelandic financial institutions in total which had received payment of their ISK money market deposits during the period from October 7 to 27, 2008 on the agreed due dates. The voiding was based primarily on the contention that the payments had reduced LBI's ability to make payment substantially, in the sense of Art. 134 of the Bankruptcy Act, and alternately on Art. 141 of the same Act, according to which voiding may be claimed if a measure improperly benefits a creditor at the expense of other creditors if the debtor was at that time insolvent or became insolvent as a result of the measure, and provided that the party benefiting from the measure knew or should have known of the debtor's insolvency or the conditions that rendered the measure improper.

LBI’s unofficial English translation of the verdict from case nr. 359/2013 (LBI hf. vs. Goldman Sachs International) is available here. Note that the basis and substance of the verdicts from these five cases are the same.

LBI's Financial Situation in Q3 of 2013

The Winding-up Board of LBI hf. has updated information on the estimated value of LBI's asset portfolio as of 30/09/2013. The real increase in estimated value quarter-over-quarter was almost ISK 18 billion, due mostly to an update of the estimated value of LBI's portfolio. Based on the situation at the end of Q3, total recoveries are expected to amount to around ISK 1,556 billion or around 51% of recognised claims (ISK 3,077 billion). Based on this figure for total recoveries, around ISK 230 billion is expected to be available after payment of priority claims, or the equivalent of a 13% recovery rate for general claims.

In Q3 the Winding-up Board made a fourth partial payment of just over ISK 67 billion to priority creditors. This brings the total distributions to priority creditors to ISK 715 billion, or 54% of recognised priority claims.

The European Court of Justice confirms the position of LBI hf. on the validity of winding-up proceedings during the moratorium period
A judgement was pronounced today by the European Court of Justice in case no. C-85/12, which concerned the validity of the substantial winding-up proceedings which commenced on 22 April 2009, while the moratorium of LBI hf. (at that time Landsbanki Íslands hf.) was in effect, in the European Economic Area.
Re-calculated value of the partial payments

On 24 September this year, the Supreme Court of Iceland pronounced its judgement in case no. 553/2013. LBI's Winding-up Board had referred the case to the courts on the basis of Art. No. 171 of the Act on Bankruptcy etc., No. 21/1991; the case was heard as a dispute in the winding-up proceedings of LBI.

News announcement from LBI hf. - Creditors Meeting

The Winding-up Board of LBI held a Creditors' Meeting today, 2 October 2013.

At this meeting the Winding-up Board presented information to creditors on the estimated value of LBI's asset portfolio as of 30 June this year (end of Q2).

Supreme Court ruling regarding FX rates/partial Payments

Tuesday, sept. 24, the Supreme Court of Iceland made a judgment in case nr. Nr. 553/2013 regarding the issue which FX rates should be applied when calculating partial payments in the winding-up of LBI, made in FX, into ISK.

The court decided that the calculation of partial payments in FX should be based on the official selling rate of the Central Bank of Iceland on the date of each payment respectively. This decision overturns the decision from the District Court and is contrary to the decision of the Winding-up Board of LBI to apply FX-rates of 22 April 2009. Please find below the link to the offical verdict on the Supreme Court‘s website: http://www.haestirettur.is/domar?nr=9035

Creditors Meeting

On Wednesday, 2 October 2013, at 9:00 am, a meeting will be held with creditors in the winding-up proceedings of LBI hf. (formerly Landsbanki Íslands hf.), Reg. No. 540291-2259, at Hotel Reykjavik Natura, Nautholsvegi 52 in Reykjavík.

The meeting was announced in the last creditors´ meeting, which was held on 30 May 2013. Furthermore the meeting has been publicised in the Official Journal in accordance with the third paragraph of Article 79 of the Act on Bankruptcies etc. No 21/1991.

Partial payments to creditors

The Winding-up Board of LBI made its fourth partial payments to priority creditors on 12 September. The payments were in total the equivalent of 69,4 billion ISK, paid in GBP, EUR and USD which were on LBI´s foreign deposit accounts on 12 March 2012 and thus exempt from the currency restrictions as provided for in paragraph five of Article 13 n of Act No 87/1992 on Foreign Exchange, as amended by Act No 17/2012.

Prior partial payments are the equivalent of 661 billion ISK which means that total partial payments to date are the equivalent of 730,4 billion ISK, reflecting a payout ratio of 55% of the total amount of claims with priorty according to Article 112 of the Bankruptcy Act No 21/1991.

LBI's Financial Information in Q1 of 2013

LBI's Winding-up Board has updated details of the estimated value of LBI's asset portfolio as of 31/03/2013. Actual estimated recovery has increased QoQ by ISK 9.4bn. Appreciation in the ISK has lowered reported estimated recovery by ISK 55.8bn, resulting in an overall decrease of ISK 46.5bn or total estimated recovery on LBI’s asset portfolio of ISK 906bn.

Cash has increased by an actual amount of ISK 72bn, of which the sale proceeds from the sale of Glitnir and Aurum assets accounted for ISK 45bn.

Based on the fixed exchange rate as of 22/04/2009, estimated recoveries as of the end of first quarter, including the partial payments, amounted to ISK 1,551 billion. This is ISK 226 billion more than the book value of priority claims according to Art. 112 of the Bankrupty Act.

Transfer Moratorium Lifted
The transfer moratorium has been lifted in advance of next week’s Creditor’s Meeting to be held on the 30th of May 2013. There has been a change to the internal procedures and the moratorium will not be in effect from 23rd of May 2013 to the 31st of May 2013.
Creditors Meeting

On Thursday, 30 May 2013, at 9:00 am, a meeting will be held with creditors in the winding-up proceedings of LBI hf. (formerly Landsbanki Íslands hf.), Reg. No. 540291-2259, at Hilton Hotel Nordica, Suðurlandsbraut 2, Reykjavík.

The meeting was announced in the last creditors´ meeting, which was held on 28 November 2012. Furthermore the meeting has been publicised in the Law and Ministerial Gazette in accordance with the third paragraph of Article 79 of the Act on Bankruptcies etc. No 21/1991.

Transfer Moratorium
The Winding-up Board of LBI hf. (formerly Landsbanki Islands hf.) has implemented a moratorium on claim transfers from 23rd of May 2013 to the 31st of May 2013. Transfers of claims will not be recognized during the moratorium in order for the Winding-Up Board to prepare an updated list of claims, that will be made available one week in advance of the next Creditor’s Meeting, held on the 30th of May 2013.
LBI's Financial Information in Q4 of 2012
LBI's Winding-up Board has updated details of the estimated value of LBI's asset portfolio as of 31/12/2012. Considerable success has been achieved in boosting recoveries, and the real increase in the estimated value of assets QoQ amounted to over ISK 32 billion. The rise during the quarter resulted from an increase in a claim against Glitnir amounting to ISK 24 billion, around IKS 4 billion resulted from the sale of Aurum Holdings Limited in the UK and other increases amounted to ISK 4 billion.
Verdicts concerning voiding of payments on money market deposits
The District Court of Reykjavik has reached a verdict in two more of cases, E-4646/2011 and E-4649/2011, in which LBI had filed for approval the voiding of payments made to so-called money market deposits. According to the Decision, the voiding claim was rejected. This is the opposite conclusion to the one LBI had in the first case, E-6440/2011, where the voiding claim was approved. All these judgments will be appealed to the Supreme Court.
Landsbanki Íslands becomes LBI hf.

As of 3 January 2013, the name of Landsbanki Islands hf. has been changed and is hereafter LBI hf.

The Winding-up Board iterates that this is not an assignment of any form and no other change has been made concerning the company, its statutory position, governance or nature of operations. LBI hf. (formerly Landsbanki Islands hf.) continues to be in winding-up proceedings under the provisions of Act No. 161/2002 on Financial Undertakings in accordance with the decision of the Reykjavik District Court and governed by the Winding-up Board as provided for by law. Consequently all existing business relationships, contracts, payment instructions and other rights and obligations related to the company or its winding-up proceedings are, and remain, unaltered.

Verdict concerning voiding of payments on money market deposits
Yesterday the District Court of Reykjavik in case no. E-6440/2011 reached a verdict in the first of cases in which LBI had filed for approval the voiding of payments made to so-called money market deposits. According to the Decision, the voiding claim was accepted and the defendant, which is a foreign financial institution, was sentenced to pay LBI ca. ISK 80mn plus penalty interest and legal costs. LBI has brought 19 actions for voiding of payments towards money market deposits and has claimed reimbursement of ca. ISK 42bn plus interest and legal costs.
Announcement from LBI

The Winding-up Board of Landsbanki Íslands hf. (LBI) announces the signing with Apollo Global Management on the sale of the entire shareholdings held by Landsbanki in Aurum Holdings Limited, which trades in the UK as Mappin & Webb, Goldsmiths and Watches of Switzerland. Landsbanki Íslands hf. was a majority shareholder of the company.

The Winding-up Board was involved in the transaction and believes that the sale achieves the objective of maximizing the proceeds from the equity in the company. Furthermore the Winding-up Board believes that the transaction delivers the best possible recovery for the bank and its creditors as a whole.

Announcement from Landsbanki Íslands hf. - Creditors meeting
The Winding-up Board of Landsbanki Íslands hf. held a creditor‘s meeting today, 28 November 2012.
Creditors Meeting
A Creditors meeting of Landsbanki Íslands hf. – in winding-up proceedings, will be held on the 28. of November 2012 at 9:00 am at Icelandair Hotel Natura at Nautholsvegur 52 in Reykjavik. An agenda for the meeting and an updated version of the List of Claims has been published on the closed creditors part of the website.
Transfer Moratorium
The Winding-up Board of Landsbanki Islands hf. has implemented a moratorium on claim transfers from 21st of November 2012 to the 29th of November 2012. Transfers of claims will not be recognized during the moratorium in order for the Winding-Up Board to prepare updated list of claims, that is to be made available one week in advance of the next Creditor’s Meeting, held on the 28th of November 2012.
Notice to creditors, Creditors meeting
The Winding-up Board announces that the next Creditors meeting of Landsbanki Islands hf. will be held on the 28. of November at 9:00 am at Icelandair Hotel Natura at Nautholsvegur 52 in Reykjavik. Please note that this is a change to the date and location of the next Creditors Meeting. It had been scheduled previously for 22 November at the Hilton Nordica.
Partial payments to creditors
The Winding-up Board of Landsbanki Islands hf. made partial payments to priority creditors in the winding-up proceedings for the third time early in October. In this instance, total payments were equivalent to ISK 82 billion. The bank's first partial payments were made to priority creditors 2 December last year, and amounted to the equivalent of ISK 432 billion. The second partial payments were made in May this year and amounted to the equivalent of ISK 162 billion. In total this means the Winding-up Board has therefore paid close to ISK 677 billion equivalent on aggregate, which amounts to around 50% of priority claims ranking under Article 112 of the Act on Bankruptcy etc. no 21/1991.
Announcement from Landsbanki Islands hf.
The Winding-up Board of Landsbanki Islands hf. announces the completion of the sale of the entire shareholdings held by Landsbanki in Corporal, the holding company of Hamleys, to Groupe Ludendo. The WuB‘s decision is supported among other things by a fairness opinion from Bank of America Merrill Lynch on the price and conditions of the sale.
Eimskip sale
LBI has sold a 7% stake in Eimskip shares to the Pension Fund of Commerce (Lífeyrissjóður verzlunarmanna). Yucaipa, the other major owner of Eimskip, has also sold a 7% stake to the Pension Fund. After this sale, LBI's ownership share is reduced to 30.3%.
U.S. ATOP events to be terminated
The Winding-up Board of Landsbanki Íslands hf. (“WUB”) instituted a claim filing process in 2009. For the holders of Landsbanki bonds, this included the blocking of a holder’s bonds and the filing of a claim directly with the WUB. Claimants were required to have their positions blocked as an integral part of the claims filing process, in order to prove ownership.
Announcement from Landsbanki Íslands hf. - Creditors Meeting
The Winding-up Board of Landsbanki Íslands hf. held a creditors' meeting today, 31 May 2012.
Creditors Meeting
On Thursday, 31 May 2012, at 9:00 am, a meeting will be held with creditors in the winding-up proceedings of Landsbanki Íslands hf., at Hilton Hotel Nordica, Suðurlandsbraut 2, Reykjavík.
Notice on the transfer of priority claims
The Winding-up Board of Landsbanki Islands hf. has decided to temporarily lift the moratorium on the transfer of claims relating to priority claims pursuant to article 112 of the bankruptcy act. Transfers of these claims will be recognized from the 30th of April to the 9th of May.
Sale of Actavis completed
An agreement to purchase Actavis by pharmaceutical company Watson Pharmaceuticals was signed in New York, USA, today.
Transfer Moratorium
The Winding-up Board of Landsbanki Islands hf. has implemented a moratorium on claim transfers from 14th of May 2012 to the 1st of June 2012. Transfers of claims will not be recognized during the moratorium in order for the Winding-Up Board to prepare updated list of claims, that is to be made available one week in advance of the next Creditor’s Meeting, held on the 31st of May 2012.
Announcement from Landsbanki Islands hf.
As a response to requests from creditors that have blocked positions in order to file a claim with the estate, the Winding-up Board of Landsbanki Íslands hf., has implemented a realignment process. If creditors wish to move their blocked positions they should contact our agent at Epiq Bankruptcy Solutions, LLC, via e-mail to landsbanki@epiqsystems.com.
Announcement from Landsbanki Islands hf.
Further to its announcement on 15 February 2012, Landsbanki announces the completion of the sale of the entire shareholdings held by Landsbanki and Glitnir hf (together with Landsbanki, the "Sellers") in Iceland Foods Group Limited ("Iceland Foods") to Oswestry Acquico Limited, a company owned by members of the senior management team of Iceland Foods, including Malcolm Walker, and other equity investors (the "Transaction"). The Transaction represents an equity value for 100% of Iceland Foods of £1,550m.
LBI's Financial Situation in Q4 2011
The Winding-up Board of Landsbanki Íslands hf. has updated the information on the estimated recovery of the bank's asset portfolio based on the status as of 31/12/2011. The actual estimated recovery increased in the quarter by ISK 15 billion. If regard is had for the sale of LBI's holding in the retail chain Iceland Foods in Q1 of this year, the actual estimated recovery increases by ISK 85 billion.
Announcement from Landsbanki Íslands hf.
Landsbanki Islands hf. confirms that the bank and Glitnir have entered into exclusive discussions with ManagerCo, a company owned by the senior management team of Iceland Foods, including Malcolm Walker, to sell their respective shareholdings in Iceland Foods. Landsbanki believes that this approach delivers the most certainty around sale completion whilst achieving the objective of maximising the proceeds from the sale of the shares.
Notification to claimants concerning objections to decisions on claims
As announced at the creditors’ meeting, on 17 November this year, those creditors wishing to submit further documentation and/or grounds for their objections can send these to the Winding-up Board no later than 15 January 2012. After the deadline for submitting documentation has passed, special meetings will be announced where an attempt will be made to resolve disputes on claims.
First partial payments in the winding-up proceedings of Landsbanki Íslands hf.
The Winding-up Board of Landsbanki Íslands hf. has made the first partial payments to priority creditors in the winding-up of Landsbanki Íslands hf. The partial payments are based on an authorisation in the sixth paragraph of Art. 102 of the Act on Financial Undertakings. Among those receiving payment were creditors in the nine deposit cases in which judgements were recently pronounced by the Supreme Court of Iceland. In tandem with making the payments, the Winding-up Board deposited in special escrow accounts an equivalent percentage of all equally ranked claims which are still disputed or where resolution of disputes is not yet concluded.
English translation of the Supreme Court judgement concerning UK and Dutch wholesale deposits
English translation of the Supreme Court judgement concerning two Dutch and five UK wholesale deposits is now available.
Extended Transfer Moratorium
The Winding-up Board of Landsbanki Islands hf. has extended the moratorium, put in place on the 17th of November 2011, on claim transfers relating to priority claims pursuant to article 112 of the bankruptcy act. Transfers of these claims will not be recognized during the moratorium in order to facilitate the Winding-Up Board’s plans for partial payments to priority creditors.
News announcement from Landsbanki Íslands hf. - Creditors meeting
Updated information on the estimated value of the bank's asset portfolio as of 30 September 2011 (Q3) was presented by the Resolution Committee to the bank's creditors. The bank has achieved considerable success in boosting recoveries, resulting in a real increase in the estimated value of assets over the previous quarter of over ISK 9 billion.
English translation of the Supreme Court judgement concerning Icesave Deposits
English translation of the Supreme Court judgement in disputes concerning the Icesave deposits in branches of Landsbanki Íslands hf. in London and Amsterdam is now avilable.
Verdicts of the Supreme Court of Iceland in disputes concerning UK and Dutch wholesale deposits
Verdicts have been pronounced by the Supreme Court of Iceland in seven disputes concerning so-called UK and Dutch wholesale deposits in branches of Landsbanki Íslands hf. in London and Amsterdam. The cases were selected as test cases and serve as precedents for over 200 similar disputes.
Supreme Court's Verdict in Disputes concerning Icesave Deposits
On 28 October 2011, the Supreme Court of Iceland handed down its verdict in disputes concerning the so-called Icesave deposits in branches of Landsbanki Íslands hf. in London and Amsterdam.
Transfer Moratorium
The Winding-up Board of Landsbanki Islands hf. has implemented a moratorium on claim transfers from 10th of November 2011 to the 21st of November 2011. Transfers of claims will not be recognized during the moratorium in order for the Winding-Up Board to prepare updated list of claims, that is to be made available one week in advance of the next Creditor’s Meeting, held on the 17th of November 2011.
Announcement of 6M Financial Data for Landsbanki Íslands hf. – Q2 2011
Updated information on the estimated value of the asset portfolio of Landsbanki Íslands hf. (LBI) as of 30 June 2011 were presented to the bank's creditors today. Following major achievements in recovering assets in Q2 this year, the estimated increase in the value of the bank's asset portfolio over the previous quarter amounts to over ISK 45 billion. Measured in foreign currencies, the real increase over the past quarter is over ISK 32 billion, with the greatest share of this difference due to exchange rate movements.
An agreement with NAPF
An agreement has been made between the Resolution Committee of Landsbanki Islands hf. and the National Association of Pension Funds.
Legal Amendments concerning Winding-up Proceedings
Certain amendments were recently made to the Act on Financial Undertakings, No. 161/2002 (AFU), with the adoption of Act No. 78/2011 by the Althingi on 10 June this year. Among the changes is the application to the Winding-up Board of a financial undertaking being wound up (and to Resolution Committees or provisional Boards of Directors, where appropriate) of the special qualification requirements which apply to the management of financial undertakings, as provided for in the second paragraph, the fourth sentence of the third paragraph and the fourth paragraph of Art. 52 of the AFU.
Notification to claimants concerning objections to decisions on claims
As announced at the creditors’ meeting, on 19 May this year, those creditors wishing to submit further documentation and/or grounds for their objections can send these to the Winding-up Board no later than 1 July 2011. After the deadline for submitting documentation has passed, special meetings will be announced where an attempt will be made to resolve disputes on claims.
New Claim Transfer Process
A new claim transfer process has been implemented by the Winding-Up Board and its agent Epiq Bankruptcy Solutions, LLC effective 30 May, 2011.  Please see the updated FAQs in the Transferring of Claims section of this website for details of the new process.
Creditors' meeting
A creditors' meeting was held by the Resolution Committee and Winding-up Board of Landsbanki Íslands (LBI) today, 19 May 2011.
Appointment of financial advisers
The Resolution Committee of Landsbanki Islands hf. has engaged UBS and Bank of America Merrill Lynch (BoAML) to act as financial advisors for strategy and management of Landsbanki‘s equity position in Iceland Foods. One of the first tasks of the financial advisors will be to provide the Resolution Committee with an assessment and outlook on the options with regards to the management of the stake in Iceland Foods, which will include, among other things, a recommendation for or against a sale at the present time.
Notice on the upcoming creditors´ meeting
On 19 May 2011 a previously advertised creditors´ meeting will be held at 9:00 am at Hilton Nordica, Suðurlandsbraut 2, Reykjavík where the Winding-up Board will present its decisions on claims against the bank to the extent possible.
Transfer Moratorium
The Winding-up Board of Landsbanki Islands hf. has implemented a moratorium on claim transfers from 05 May 2011 to 23 May 2011. Transfers received on or before 04 May will be processed, but no transfers, including those already under review, will be deemed successful until after 23 May 2011. If a Claim Transfer Request Form is received during the period from 05 May 2011 to 23 May 2011, it will be held and deemed accepted for all purposes as though received on 23 May 2011.
Rulings in Disputes over Icesave Deposits
The District Court of Reykjavik has issued rulings in proceedings relating to deposit claims lodged by the UK and Dutch deposit guarantee schemes in connection with the Icesave savings accounts which were offered in those countries. The Court confirmed the decisions reached by the Winding-Up Board as regards priority ranking, principal amount and ownership (subrogation). It furthermore concluded that the determination of interest and costs claims should be governed by UK and Dutch law. The Court held that the conditions imposed by those laws for claiming default interest had been met. It did not agree that there were grounds for claiming costs.
Media Speculation re Iceland Foods Group Limited
The Landsbanki Resolution Committee notes media speculation with regards to the potential disposal of its majority stake in Iceland Foods Group Limited. The Committee can confirm that it has initiated a process to evaluate its options with regards to its holding in Iceland Foods. The management of Iceland Foods has been kept fully informed of developments, and the Committee will make further statements as and when there is a significant development to announce.
The verdicts of the District Court of Reykjavík in disputes regarding British and Dutch wholesale deposits
Verdicts have been issued in disputes regarding wholesale deposits of British and Dutch municipalities deposited in the London and Amsterdam branches of Landsbanki Íslands hf. The District Court of Reykjavík reached the decision that the wholesale deposits are considered to be deposits under Act no. 98/1999 on Deposit Guarantees and Investor- Compensation Scheme. The District Court held the legal provisions on the priority of deposits to be valid legal grounds and thus binding. The verdict reached the decision that British and Dutch laws apply regarding the right for interests but claims for costs were rejected. These verdicts are in accordance to the decision of the Winding-Up board. The disputing parties have a two week grace period to appeal the verdicts to the Supreme Court of Iceland.
Case pleadings before the District Court on the priority of deposits are concluded
On March 23rd case pleadings before the District Court of Reykjavík in disputes regarding the claims of FSCS and DNB against Landsbanki Islands hf. for the so called Icesave deposits. The disputes of the cases revolved around the priority of deposits and the validity of the Emergency Act as well as whether FSCS and DNB were entitled to default interests and costs. In addition to FSCS and DNB and the Winding-up Board a group of general creditors were parties to the cases which had objected to the decision of the Winding-up Board to recognise the priority of deposits. It should be noted that on last February 23rd case pleadings concluded before the District Court in the seven disputes regarding British and Dutch wholesale deposits which were chosen as test cases. Those cases also addressed the validity of the priority provisions of the Emergency Act but also whether wholesale deposits are considered to be deposits under Act no. 98/1999 on Deposit Guarantees and Investors’ Compensation Scheme. Verdicts in these disputes may be expected in the next few weeks but the outcome of these cases are crucial for the arrangement of disbursements to creditors of the bank.
Financial information of GLI based on the status at 31.12.2010
There has been considerable success in increased reclaims of the asset portfolio of Landsbanki Íslands hf. during the last quarter of 2010, for which summary figures are published today. The asset portfolio increased by ISK 37 billion from the end of the third quarter and the value of the portfolio increases from ISK 1,138 billion to ISK 1,173 billion based on the end of year 2010. The real value of the asset portfolio has increased in foreign currencies for just under ISK 160 billion from April 30th 2009 to the end of year 2010, or an average of almost ISK 23 billion for each quarter. Due to the fact that the vast majority of the bank’s asset portfolio is in foreign currencies the amounts in foreign currencies give a realistic comparison of its valorisation. Only a little over 8% of the bank’s assets are in Icelandic Krona.
Landsbanki Íslands hf. sells Hotel D'Angleterre
Landsbanki Íslands hf. (LBI) has accepted the offer from a company owned by Remmen's Stiftung von 1986 to purchase the Hotel D'Angleterre in Copenhagen. The new owners will take over operation of the hotel on 1 February this year.
News announcement from LBI – Creditors' Meeting
The Resolution Committee and Winding-up Committee of Landsbanki Íslands (LBI) held an open creditors’ meeting today, 1 December 2010. The meeting included presentation and discussion of decisions by the Winding-up Board on 6,659 claims lodged against the bank. The bank’s Winding-up Board has now taken decisions on a total of 9,152 claims. The majority of the claims discussed at today’s meeting were claims for notes issued and sold by the bank. At previous meetings the Winding-up Board presented decisions on 2,789 claims, of which by far the greatest number were objected to. As provided for by law, the Winding-up Board has arranged meetings to seek to resolve disputes on 921 claims. Of these 309 disputes have been referred to the District Court. Four Rulings in cases have been pronounced by the District Court, two of which have been referred to the Supreme Court.
Recognition of the winding-up proceedings in Canada
On 4 November 2010, the Winding-up Board obtained the recognition of the Icelandic winding-up proceedings in Canada under Canadian bankruptcy and insolvency legislation. Accordingly, the Superior Court of the Province of Quebec issued an order, effective throughout Canada, that no legal proceeding or enforcement process may be commenced in any court or tribunal in Canada against or in respect of Landsbanki or Landsbanki’s assets. This order, among the first to be granted to a foreign entity in Canada, is in effect for an initial period ending on 4 November 2011, at which time the order may be extended by the Canadian court upon application by the Winding-up Board.
Transfer Moratorium
The Winding-up Board of Landsbanki Islands hf has implemented a moratorium on claim transfers from 16 November 2010 to 06 December 2010. Transfers received on or before 15 November 2010 will be processed, but no transfers, including those already under review, will be deemed successful until after 06 December 2010. If a Claim Transfer Request Form is received during the period from 16 November 2010 to 06 December 2010, it will be held and deemed accepted for all purposes as though received on 06 December 2010.
Announcement from Landsbanki Íslands hf.
Today, 22 November 2010, the Reykjavík District Court ruled that Landsbanki Íslands hf. is to be wound up as provided for in the general rules of Act No. 161/2002 as amended. With this ruling the bank’s moratorium is concluded and general winding-up procedures now apply. The ruling involves no changes to the bank’s day-to-day activities or its legal status.
Notice on the upcoming creditors´ meeting
On 1 December 2010 a previously advertised creditors´ meeting will be held at 9:00 am at Hilton Nordica, Suðurlandsbraut 2, Reykjavík where the Winding-up Board plans to continue to present its decisions on claims lodged with priority according to Articles 109-112 of the Act on Bankruptcy etc., as well as presenting its decisions on general claims against the bank to the extent possible. Furthermore, the Winding-up Board plans to present its decision on claims with priority according to Articles 109-112 of the Act on Bankruptcy etc. delivered after 30 October 2009.
LBI’s financials in Q3 of 2010
Landsbanki Íslands hf. was considerably successful in increasing assets recovered in Q3 of 2010. The increase over the previous quarter amounted to ISK 18 billion in foreign currencies. The real increase in the value of the bank’s asset portfolio in foreign currencies was equivalent to almost ISK 130 billion from 30 April 2009 to 30 September 2010, or on average close to ISK 21 billion per quarter.
Extension of moratorium
The Reykjavik District Court issued a ruling extending the moratorium of Landsbanki Íslands hf. on Tuesday, 31 August 2010. The moratorium was extended up until and including 5 December this year, or to the limit authorised by law. The premises provided in the ruling explain the details of the bank´s winding-up proceedings since 22 April 2009 which have been characterised as moratorium, and its continuation in winding-up proceedings under general rules once the moratorium concludes.
News announcement from Landsbanki Íslands hf. Creditors' meeting
The principal focus of this creditors’ meeting of Landsbanki Íslands hf. is the proposed extension of the bank’s moratorium. The Reykjavík District Court originally approved the bank’s request for a moratorium on 5 December 2008. Since that time it has been extended twice, and the current moratorium period expires on 26 August. The creditors’ Appointee in moratorium, the Winding-up Board, and the Resolution Committee have agreed to request an extension of the moratorium as allowed by currently applicable legislation. As the moratorium can last for a maximum of 24 months, the request will be for an extension which can last until 5 December this year. After that time, the bank’s general winding-up proceedings will continue.
Notice of Creditors’ Meeting on the Moratorium of Landsbanki Íslands hf.
A ruling by the Reykjavík District Court, pronounced on 27 November 2009, authorised the extension of the moratorium granted to Landsbanki Íslands hf., Reg. No. 540291-2259, Austurstræti 16, 101 Reykjavík, which was originally granted on 5 December 2008, to 10:00 am on 26 August 2010.
Creditors Meeting May 2010
A meeting of creditors of Landsbanki Íslands hf. was held on Thursday, 27 May 2010, in Reykjavík. The Resolution Committee presented a summary of LBI's financial position and the Winding-up Board gave an account of decisions on recognising claims. Creditors were provided with an opportunity to object to decisions by the Winding-up Board and, in addition, to raise general questions concerning the bank's affairs. Experts from the forensic accounting teams of Deloitte in London and the legal office Morrison and Foerster reported on their investigations into the business of Landsbanki Íslands hf.
An agreement reached between third parties regarding Landsbanki Luxembourg
The Central Bank of Iceland, Central Bank of Luxembourg (BCL) and the liquidator of Landsbanki Luxembourg have signed an agreement to purchase 98% of the outstanding bonds in Avens B.V. Below is the text of the joint press release issued by the three parties. Landsbanki Íslands hf (LBI) is not a direct participant in the transaction. LBI believes however that this transaction is a positive step towards reaching a global agreement and solution in respect of Landsbanki Luxembourg.
Announcement from LBI on Amsterdam Branch
Landsbanki Íslands hf. takes over administration of the bank's assets in the Netherlands An agreement has been reached with the administrators of the Amsterdam branch of Landsbanki Íslands hf. (LBI) giving the bank full control of the branch and its assets as of 13 April 2010. LBI's Resolution Committee and Winding-up Board have placed great emphasis on obtaining unrestricted control of the branch.
Announcement from LBI on Nordic Partners
Landsbanki Íslands hf. (LBI) is in the process of appropriating the entire asset portfolio of Nordic Partners. A Latvian-based management team, lead by Daumants Vitols, has acquired holding of 51% of NP Limited's share capital. Other Nordic Partners assets to be appropriated by LBI are 5 Dornier jets and 3 hotels in Copenhagen, Denmark, including the Hotel D'Angleterre. The assets are being managed by the bank with the intent of maximising recovery. New ownership of NP Limited will lead to increased efficiency. The hotels in Denmark will continue to be operated; there are no plans for speedy divestment and the aim is to wait for market conditions to improve in order to achieve a better sale price. The same applies to the jet aircraft.
Creditors Meeting February 2010
The accompanying documentation, that is published on our homepage under Creditor´s meetings, includes substantially more information on the activities and financial affairs of Landsbanki Íslands hf. (LBI) than have been previously available, together with a more detailed analysis of them. In providing this, the bank aims to respond to requests for increased information disclosure and transparency in the work of Resolution Committees and Winding-up Boards.
Updated list of claims
Creditors of Landsbanki Íslands hf. are advised that an updated list of claims lodged against the bank has been published on a restricted area of LBI's website.
Joint press release by the Ministry of Finance and the Resolution Committee
The Icelandic government, the Resolution Committee of Landsbanki Ísland and new Landsbankinn (NBI) have signed a final agreement on the settlement of assets and liabilities following the division of Landsbanki Íslands into old and new banks, following its collapse in October 2009. Representatives of leading creditors have participated in the negotiations.
Permission for an extension of a moratorium granted
Request of Landsbanki Íslands for an extension of a declaration of a moratorium with a submission that was submitted for consideration during a session of the court on the 26 of this month, the Landsbanki Íslands made a request for an extension of its permission for a moratorium to be extended for six months, cf. authorization in par. 3 of Article 98 in Act no. 161/2002, cf. Article 2 in Act no. 129/2008, cf. provisional clauses IV and V in Act no. 161/2002, cf. Act no. 44/2009.
Time limit to lodge a claim has expired
On 30 April 2009 the Winding-up Board of Landsbanki Íslands hf. invited all parties considering themselves as creditors of the bank to submit their claims within six months. That time limit expired on 30 October 2009. Those who did not file their claims against the bank within the time limit shall have their claims cancelled against the bank, unless specific exceptions apply as referred to in points 1-6 of Art. 118 of the Act on Bankruptcy etc., no. 21/1991.
Heads of terms executed between the Ministry of finance and the Resolution Committee
The Resolution Committee of Landsbanki Íslands hf. is pleased to announce that agreements have been reached on the value of and payment for those assets transferred from Landsbanki to NBI hf. The agreements diminishes uncertainty and lays the foundation for more focused efforts by the Resolution Committee to maximise the value of the insolvent estate to the benefit of its creditors. The agreements mark a certain turning point, in that the recovery rate to the bank's preferential creditors is now estimated to be higher than previously anticipated.
Act on state guarantee
A Bill regarding authorisation for the Minister of Finance, to issue a State guarantee of the loans granted by the governments of the UK and the Netherlands to the Depositors and Investors Guarantee Fund of Iceland, was passed as law by the Parliament of Iceland on the 28th of August 2009.
No disagreement exist between LBI and Jón Ásgeir Jóhannesson
In response to reports in the media of dealings between the Resolution Committee of Landsbanki Íslands hf. and Jón Ásgeir Jóhannesson, the Resolution Committee would like to make it clear that no disagreement exists with Jón Ásgeir Jóhannesson and/or Ingibjörg Stefanía Pálmadóttir concerning their previous commitments to the bank. In recent months, the parties have worked jointly on upgrading collateral already held by the bank. Mortgaging of the property Hverfisgata 8-10 was concluded in order to better guarantee repayment of loans connected to the parties.
Investigation on activities and financial matters
The Winding-up Board and Resolution Committee of Landsbanki Íslands hf. have, through legal counsel, engaged Deloitte in London to carry out an investigation of the bank's activities and financial matters. The team involved in the examination specialises in forensic accounting and has extensive experience in this area. Deloitte in London will be assisted in its investigation by Deloitte in Iceland.
Lárus Finnbogason resigns from the Resolution Committee of LBI
Lárus Finnbogason has resigned from the Resolution Committee of Landsbanki Íslands hf. at his own request, after serving as Chairman of the Resolution Committee for almost nine months.
Activities and Current Situation of Landsbanki Íslands hf.
The Resolution Committee of Landsbanki Íslands hf. has updated its assessment, presented in February this year, of the bank's assets as of the end of April 2009. According to the revised breakdown of the valuation, which was performed independently by the bank's experts, an estimated ISK 1,100 billion can be obtained for its assets to pay claims against the bank. Assuming that deposit claims in the UK and the Netherlands, are preferential claims, this would mean that around 83% of preferential claims will be covered, based on the position as of 30 April this year.
The British Parliament passed the Statutory Instrument Landsbanki Freezing (Revocation) Order 2009
The Landsbanki Resolution Committee notes the decision to lift the Freezing Order which was imposed in October 2008 on the UK assets of Landsbanki. The lifting of the Order is a positive step towards our goal to ensure the assets of the Bank are realised at maximum value for a fair distribution to all depositors and creditors.
Handling of Claims against Landsbanki Íslands hf.
The entry into force of Act No. 44/2009, amending Act No. 161/2002, on Financial Undertakings, as subsequently amended, makes it possible to begin the process of lodging claims against Landsbanki Íslands hf.
Moody's downgrades Landsbanki Íslands hf. and will withdraw ratings
Moody's yesterday downgraded Landsbanki Íslands long-term deposit rating to C from Caa1 and its senior debt ratings to C from Caa2. Moody's also announced that they will withdraw the ratings within the next few days.
Moratorium extended until 26 November
The District Court of Reykjavík today agreed to a motion by the Resolution Committee of Landsbanki Íslands hf. to extend the company's moratorium by nine months, or until 26 November 2009. No creditor objected to the extension request when the case was brought before the Court.
Fitch affirms and withdraws ratings on Landsbanki Íslands hf.
Fitch Ratings today affirmed and simultaneusly withdrew the credit ratings of Landsbanki Íslands (Old Landsbanki). Fitch has also affirmed and simulteneusly withdrawn the ratings of Old Landsbanki's UK subsidiary, Landsbanki Heritable Bank Plc.
Kepler Capital Markets sold to management and staff through a management-led buy-out (MBO)
The Resolution Committee of Landsbanki Íslands ("Old Landsbanki") and Kepler Capital Markets ("Kepler") are pleased to announce the sale of Kepler to management and staff through a management-led buy-out (MBO).
Second Meeting of Informal Creditors' Committee
The Resolution Committee held an informal creditors' committee (ICC) meeting on 12 December 2008. The ICC is made up of creditors and creditors' representatives of Old Landsbanki representing the interests of different classes and types of creditors.
Landsbanki Islands hf. granted a moratorium
Landsbanki Islands hf. ("Landsbanki") is currently being controlled by a Resolution Committee appointed by the Icelandic Finance Supervisory Authority (the "FME") under emergency legislation passed at the beginning of October. The bank is not in any form of administration or liquidation process.
Landsbanki Resolution Committee meets with creditors
The Chairman of the Resolution Committee of Landsbanki Íslands hf ("Old Landsbanki"), Mr Lárus Finnbogason, announced that the first informal creditors' committee meeting (ICC) had been held on Friday 14th November, in Reykjavík, Iceland. The ICC is made up of creditors and creditor's representatives of Old Landsbanki representing the interests of different classes and types of creditors.
Landsbanki Íslands hf. requests to remove its listed equities from trading
The Board of Directors of Landsbanki Íslands hf. (administration committee), in a letter dated 13 October 2008, has requested that the Iceland Stock Exchange Ltd. (Kauphöll Íslands hf.) remove the listed equities of Landsbanki Íslands hf. from trading on the Nasdaq OMX Nordic Stock Exchange in Iceland, cf. Paragraph 2, Article 24 of Act No. 110/2007, on Stock Exchanges.
New Landsbanki Íslands hf. Established
A new banking institution fully owned by the Government of Iceland has been established, taking over part of the operations of Landsbanki Íslands hf. The new bank's formal name will be New Landsbanki Íslands hf.
Landsbanki did not transfer funds from the UK to Iceland
Landsbanki did not transfer funds from the UK to Iceland Due to press reports and claims concerning fund transfers between Landsbanki subsidiaries and the parent company during the period leading up Icelandic financial enterprises being placed in receivership by the Icelandic FSA, as provided for by newly adopted legislation, Landsbanki would like to state the following:
Administration committee takes control of Landsbanki Islands hf.
Recent weeks have demonstrated deterioration in the world financial markets not seen since beginning of this century. Established banking institutions have failed and many others are ailing. Governments are taking extraordinary measures to adapt to these challenging times.
Landsbanki's Operations Continued Under Unchanged Management
Landsbanki Íslands announces that the Icelandic Financial Services Authority, the Fjármálaeftirlitið (FME) has decided to take over the powers invested in Landsbanki's shareholders meeting and Landsbanki's Board of Directors. The FME has appointed a receivership committee which has assumed the role of the Board of Directors with immediate effect.