Glitnir hf. has signed an agreement with Árkaup hf., the owner of the pharmacy chain Lyfja hf. for the financial restructuring of Lyfja, subject to the approval of the competition authorities. This action ensures Lyfja's activities will continue and adjusts its debts to fit the company's debt service capacity. Á íslensku
As of 1 January 2012, Glitnir's Winding-up Board formally assumes all tasks of the bank's Resolution Committee, whose work is now concluded. This change is in accordance with amendments to the Act on Financial Undertakings, No. 161/2002, adopted by the Icelandic parliamentAlthingias Act No. 78/2011. Following the adoption of the Act, work has been underway to transfer tasks from the Resolution Committee to the Winding-up Board in order to implement the organisational change which took place at the end of the year 2011 without causing a disturbance to Glitnir's activities. This change has proceeded smoothly and is now fully implemented. On this occasion, thanks are due to the members of Glitnir's Resolution Committee for their positive efforts on behalf of the bank through more than three years of challenging times. Á íslensku
The Winding-Up Board will operate a Transfer Moratorium from 1January 2012 to 6 February 2012, but will continue to process Claim Transfer Request Forms already in its possession or in the possession of its agent, Epiq Bankruptcy Solutions, LLC, as at 1 January 2012.
The next creditors‘ meeting is scheduled for Tuesday, 31 January 2012, at 10:00 am at Grand Hotel, Sigtun 38, 105 Reykjavik, Iceland. Parties who have submitted claims against the bank are entitled to attend the meeting.
The Luxembourg subsidiary of Glitnir had in March 2009 gone through a successful restructuring and settlement of its interbank debt and depositors’ base. At that time the BCL remained its sole creditor, with an outstanding balance in excess of EUR 1 billion, collateralized by a substantial pool of assets pledged in its favour. Á íslensku
The Supreme Court of Iceland has today handed down its judgment on the wholesale depositors’ priority claims in both the Landsbanki and Glitnir cases. For Glitnir, there were two specimen claims made by its creditors.
In summary, the Supreme Court upheld the judgment dated 1 April 2011 of the Reykjavík District Court which had decided that the specimen claims of Glitnir’s wholesale depositors do have priority status under Article 112 of Act No. 21/1991 on Icelandic Bankruptcy. The objections made by the relevant creditors to the Winding-up Board’s decision on the two specimen claims have therefore been upheld.
The Winding-up Board is considering the judgment and its applicability to other claimants seeking priority in the winding-up of Glitnir.
The Supreme Court of Iceland will hand down their judgement on the wholesale depositors case on Friday 28 October, 2011 at 2 p.m. An update on the judgement will be provide in due course.