Announcement of outcome of consultations regarding Capital Control Liberalization and potential exemption terms affecting Glitnir’s estate
The Winding-up Board would like to bring to Glitnir's creditors' attention today's announcement by the Icelandic government regarding a Stability Tax expected to be introduced in Parliament today and a proposal for an exemption from the Stability Tax.
The Winding-up Board has been aware that creditors of Glitnir representing approximately 25% of Glitnir's claims by value have been in private consultations with the Iceland Task Force on the Liberalization of Capital Controls, established by the Icelandic Government and Central Bank of Iceland, regarding the terms by which Glitnir could obtain a potential exemption from capital controls and the Stability Tax, which may ultimately form the basis for a composition proposal. The Winding-up Board notes that these discussions have concluded with the terms for a potential exemption having been agreed and announced today by the Icelandic government ("Potential Exemption Terms").
The Winding-up Board is reviewing the details of the Stability Tax and the Potential Exemption Terms to determine the impact of the Stability Tax and the Potential Exemption Terms on the Glitnir Estate and will meet with the ICC and its advisors to understand the extent of creditor support for the Potential Exemption Terms. Subject to sufficient creditor support, the Winding-up Board would then intend to submit an exemption request to the Central Bank of Iceland consistent with the Potential Exemption Terms and then proceed to launch a composition proposal to creditors.
The Winding-up Board will provide further updates, via Glitnir's website, as soon as possible.
Press release from The Iceland Ministry of Finance: http://www.ministryoffinance.is/news/nr/19598