The Ministry of Finance has accepted a request from the Resolution Committee of Glitnir, on behalf of its creditors, for an extension until October 15th to arrive at a final decicion whether to acquire control of Islandsbanki. Á íslensku
A meeting with creditors of Glitnir hf. was held on 22 September 2009 at Hilton Reykjavík Nordica hotel in Reykjavík.
At the meeting, the Resolution Committee, Moratorium Appointee and other presenters updated creditors in respect of the recapitalisation of Islandsbanki hf., together with other updates for creditors.
The Moratorium Appointee and Resolution Committee of Glitnir hf. ("Glitnir") have announced that they will be holding a creditors' meeting at 9am on 22 September 2009 at Hilton Reykjavík Nordica hotel, Reykjavik, Iceland.
Glitnir's Resolution Committee and the Icelandic government have signed an agreement on settlement for assets transferred from Glitnir to Íslandsbanki after the Icelandic banks' collapse in October last year. This settlement has been concluded following a preliminary agreement announced on 20 July this year, pursuant to which the Treasury decided to provide Íslandsbanki with ISK 65 billion in additional equity on 14 August.
Under the terms of the Moratorium on creditor proceedings granted to Glitnir hf. ("Glitnir") on 24 November 2008 by the District Court of Reykjavik, the Moratorium Appointee of Glitnir presented the assets and liabilities of Glitnir, together with an estimate of the value of the assets and a computation of the liabilities as at 31 December 2008.
Agreement has been reached on Íslandsbanki's capital structure. Under the agreement, Glitnir banki hf. has the right to subscribe for a majority shareholding in Íslandsbanki. This is the outcome of negotiations between the government and representatives of Glitnir's creditors. This implies that Íslandsbanki might soon be fully owned by foreign parties. According to the agreement the Icelandic government will provide the Bank with new equity to begin with which the creditors will have an option to acquire before 30 September given certain conditions. Government will as well support the capital of Islandsbanki with a subordinated loan to strengthen the bank's capital ratio and liquidity.
Capitalisation and Compensation Agreement between the Government and the Resolution Committee of Glitnir
The Government of Iceland and the Resolution Committee of Glitnir are pleased to announce that an agreement has been reached in respect of the initial capitalisation of Islandsbanki and the basis for the compensation payable to the creditors of Glitnir following the creation of Islandsbanki in October 2008. This will put Islandsbanki on a secure financial footing for its future development.
Capitalisation of the Three Principle Icelandic Commercial Banks and Basis of Agreement with Creditors
The Government of Iceland is pleased to announce that it has determined the basis for the capitalisation of the three new banks (Islandsbanki, New Kaupthing and New Landsbanki) created following the collapse of the main Icelandic commercial banks in October 2008. It has also reached heads of agreement with the Resolution Committees of the old banks in relation to how compensation for the transfer of net assets into the new banks will be achieved. In respect of two of the new banks, Islandsbanki and New Kaupthing, this includes a conditional agreement for the old banks to subscribe for majority equity interests in the new banks.