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.
Árni Tómasson, Chairman of Glitnir's Resolution Committee has decided to resign from the Committee, effective 1 October 2011. To ensure as smooth a transition as possible, he has agreed to the Winding-up Board's request to remain on the Board of Directors of Íslandsbanki, to assist in the sales process of Glitnir's holding in Íslandsbanki, and to undertake various assignments at the Winding-up Board's request based on his previous work for Glitnir. Á íslensku
The Winding-Up Board has decided to set up a new amended Claim Transfer Request Form that has all necessary documents in one document. This includes the Claim Transfer Request Form, the Signature Verification Form, details about how to fill in the forms and a power of Attorney in case the transferee has a legal representative registered.
By setting up this new Form up on the website the Winding-up Board hopes that the process will become more prudent, since parties can now access and fill out all relevant forms in one document. To access the new form please use the following link:
The Resolution Committee and Winding-Up Board of Glitnir hf. herby present the Statement of Assets and Liabilities, incorporating an estimate of value of Glitnir's assets as at 30 June 2011 and a computation of liabilities.
A creditors' meeting will be held on Wednesday, 31 August 2011, at 10:00 am at Hilton Hotel Nordica, Suðurlandsbraut 2, 108 Reykjavík. Parties who have submitted claims against the bank are entitled to attend the meeting. Decisions of the Winding-Up Board insofar will be presented and discussion on the list of lodged claims continues. An updated list of claims will be publised on Glitnirs secure creditors website and access to submit objections electronically made available at midnight 23/24 August 2011. If you see reason to object to the decision of your claim or other claims, which the Winding-Up Board has decided on from 14 April 2011 to 31 August 2011, such objection(s) must be delivered to the Winding-Up Board no later than at the meeting 31 August 2011.
The Winding-Up Board will operate a Transfer Moratorium from 3 August 2011 to 4 September 2011, 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 3 August 2011. All Claim Transfer Request Forms received after 3 August until, and including, 4 September 2011, will not be processed due to the Transfer Moratorium. If a Claim Transfer Request Form is received during this period, it will be held and treated for all purposes (including all time periods referenced in this notice) as though received on 4 September 2011. The Transfer Moratorium is due to the open creditors' meeting scheduled for 31 August 2011.
On Friday 10 June 2011 the Icelandic Parliament passed an amendment to Act No. 161/2002 on Financial Undertakings. This amendment includes a provision, only announced the preceding Wednesday, which prohibits the payment of interim distributions to creditors with claims under Article 113 of the Bankruptcy Act. Article 113 creditors are ordinary unsecured creditors.
The effect of this change in the law is to prevent Glitnir from making the planned interim distribution to unsecured creditors which has previously been announced. The Winding-up Board of Glitnir will assess the consequences of this change in law and will consider what alternative proposals may be made to Article 113 creditors of Glitnir.