Announcement regarding the prospective post-composition board of Glitnir
The Winding-up Board (the “Winding-up Board”) of Glitnir hf. (“Glitnir”) announced on 20 September 2012 that, as part of its planning for a potential composition proposal, it had identified Jan Kvarnström as the prospective chairman of the post-composition board of directors of Glitnir, and had entered into a consultancy agreement with him to cover the period prior to the composition becoming effective.
At that time, it had been anticipated that Glitnir would shortly be able to propose a composition to its creditors for their approval. In that respect an application (the “Application”)was made on 28 November 2012 to the Central Bank of Iceland (the “CBI”) for an exemption from the Foreign Exchange Act. No. 87/1992 in order to proceed with the proposed composition which was detailed in the Application. However, and as the Winding-up Board recently announced, the first response to the Application was only received from the CBI on 23 September 2013. Although the Winding-up Board is seeking to arrange a meeting as soon as possible with the CBI to discuss the Application, it is not currently clear when it will be possible to proceed with a composition.
In the period since September 2012 there have been significant changes to Glitnir’s asset portfolio, and in particular a substantial increase in Glitnir’s cash balance as a proportion of its total assets. In consequence, the expected role for the prospective chairman of the post-composition board of directors has changed significantly.
Accordingly, and following consultation with members and representatives of Glitnir’s informal creditors’ committee, the Winding-up Board has agreed with Mr Kvarnström that he should be released from his obligations to Glitnir so that he is free to pursue other opportunities. Mr Kvarnström’s consultancy agreement expired automatically on 30 September 2013, and will not be renewed.
An alternative candidate for the role of chairman of the post-composition board of directors will be selected in due course.
The Winding-up Board wishes to thank Mr Kvarnstöm for his contributions.
For the Winding-up Board of Glitnir hf.
Steinunn Guðbjartsdóttir, Supreme Court attorney
Páll Eiríksson, District Court attorney