Yesterday in New York, Glitnir responded to the motions to dismiss the New York Complaint that Defendant Jón Ásgeir Jóhannesson and his co-defendants filed in July. Glitnir reaffirmed in its response its strong commitment to pursuing the New York Complaint as part of its worldwide effort to recover assets for the Bank’s creditors. Íslenska.

 

Today, 18 August 2010, the District Court of Reykjavik ruled in favour of Glitnir's request for an extension to the Moratorium order originally granted on 24 November 2008. This last period of extension is due to end on 24 November 2010 and the formal winding-up process of the bank starts.

Glitnir in Luxembourg establishes subsidiary to administer the bank’s asset portfolio

Glitnir in Luxembourg has established the subsidiary Reviva Capital to handle the administration and management of the bank’s asset portfolio. Reviva Capital has received an operating license from the authorities and the financial regulator in Luxembourg to handle collection and asset administration activities, and intends furthermore to offer other parties its services. Reviva Capital has eighteen employees. Management and key employees of Glitnir in Luxembourg own a 10% stake in the company, with the remainder held by Glitnir in Luxembourg. The employees’ holding is conditional and linked to the company’s long-term objectives.  Á íslensku

The Winding-up Board of Glitnir has today obtained further worldwide Freezing Orders in connection with Glitnir’s claim against Jón Ásgeir Jóhannesson. The Freezing Orders are in respect of transfers of sums totalling £585,648 made out of Jóhannesson’s bank account after the worldwide Freezing Order obtained against him on 11 May.

The new Orders have been made against Bohemian Partners LLP, Tina Maree Kilmister, Aspiring Capital Partners LLP and Jeffrey Ross Blue, and attach only to the money received from Jóhannesson. There are no other claims made against the four new respondents, the rest of their assets are not frozen and there are no allegations of wrongdoing against them.  Á íslensku

On 23 July 2010, the District Court of Reykjavik made a ruling regarding foreign currency indexed loans, which had been deemed illegal by the Supreme Court last month. The ruling was that the original interest (LIBOR +) should not apply, rather Icelandic interest (non-indexed) issued by the Central Bank of Iceland from the first day of the loan agreement.

The Resolution Committee believes the issue is now moving in the right direction, but the matter has been appealed to the Supreme Court. The Resolution Committee expects a ruling in September this year.

It is the Resolution Committee’s view that, should the Supreme Court not over rule the District Court’s decision, there will be minimal impact on Glitnir and its investment in Islandsbanki.

The Winding-Up Board of Glitnir has prepared two memos which may provide useful information to creditors of the Bank. The first is in relation to the legal framework and processes in respect of making interim distributions to creditors. The second is in relation to the legal framework for a Composition under Icelandic law. Both memos are attached below.

Glitnir composition memo
Glitnir distribution memo

On 9 July 2010 in the Royal Courts of Justice in London, Jón Ásgeir Jóhannesson (JAJ) applied to have the worldwide freezing order, originally granted on 11th May 2010, overturned.  GLB argued that the order should remain in force as they believed that the responses by JAJ to the original order were incomplete and did not present a complete view of the worldwide assets he controlled.

A ruling by the Reykjavík District Court, pronounced on 19 November 2009, authorised the extension of the moratorium granted to Glitnir hf., Reg. No. 550500-3530, Kirkjusandur, 105 Reykjavík, which was originally granted on 24 November 2008, to 11:00 am on Friday, 13 August 2010.

The Resolution Committee and Winding-Up Board of Glitnir hf. hereby present the Financial information for Q1 2010.  These information where presented on the open creditors meeting on 19 May 2010.

 Glitnir Q1 2010 Financial information

• Lawsuit filed in New York court
• Freezing order secured in London on Jóhannesson’s personal assets worldwide
• Press conference to be held at 14.30 today in Reykjavik

New York, May 12, 2010 – Glitnir hf. announces that it has commenced legal action in the Supreme Court of the State of New York against Jón Ásgeir Jóhannesson, formerly its principal shareholder, Lárus Welding, previously Glitnir’s Chief Executive, Thorsteinn Jonsson, its former Chairman, and other former directors, shareholders and third parties associated with Jóhannesson, for fraudulently and unlawfully draining more than $2 billion out of the Bank. Á íslensku

 A full copy of the New York court action