Notice to creditors

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.