Due to the open creditors' meeting on 8th of September 2015 the Winding-up Board of Glitnir hf. will not issue new notices of successful transfers from 27th of August 2015 until, and including, 8th of September 2015. The open creditors' meeting will not affect other notices sent from the Winding-up Board or its transfer agent, Epiq Bankruptcy Solutions, LLC, in the transfer process of requested transfers. Notices of successful transfers will be issued again from 9th of September 2015.
Glitnir lodges request for exemptions from Capital Controls and signs Heads of Agreement with Islandsbanki
Glitnir has today lodged with the Central Bank of Iceland ("CBI") its request for the necessary exemptions from the Act on Foreign Exchange (No. 87/1992) to enable Glitnir to implement the proposals made by certain of Glitnir's creditors ("Creditor Proposals") which were announced by the Ministry of Finance and Economic Affairs on 8 June 2015 and to proceed with a composition on the basis of the Creditor Proposals (the "Composition"). Glitnir is now seeking to engage with the CBI to progress this request and will update creditors in due course.
Glitnir has also entered into heads of agreement with Islandsbanki hf. ("Heads of Agreement") under which the parties have agreed to co-operate in order to facilitate the Composition. Glitnir and Islandsbanki have agreed to work together to agree the necessary documentation and secure the necessary approvals to give effect to the Heads of Agreement.
Islandsbanki's announcement of the Heads of Agreement, which includes a summary of the principal terms can be found at the following link:
Islandsbanki announcement (English)
Islandsbanki announcement (Icelandic)
The announcement of the terms of the Creditor Proposals made by the Ministry of Finance and Economic Affairs on 8 June 2015 can be found at the following link:
Ministry of Finance and Economic Affairs announcement (English)
Ministry of Finance and Economic Affairs announcement (Icelandic)
Further to its announcement on 8 June 2015, the Winding-up Board wishes to update creditors on the next steps towards the proposal of a composition to conclude the winding-up of the Glitnir estate.
Glitnir is in the process of preparing a submission to the Central Bank of Iceland ("CBI") requesting exemption from the capital controls to effect a composition on the basis of the proposals made to the Task Force on the Liberalization of Capital Controls (the "Task Force") by a group of restricted holders of Glitnir claims (the "Creditor Proposals") outlined in the announcement by the Ministry of Finance and Economic Affairs ("Iceland in Continuing Consultations Regarding - Capital Control Liberalization (Glitnir)") on 8 June 2015 (the "MoF Announcement").
The Creditor Proposals were made in connection with consultations relating to the proposed introduction of a Stability Tax, to be levied on the assets of financial undertakings in winding-up proceedings (such as Glitnir) as at 31 December 2015 unless they have concluded a composition on terms which are acceptable to the Central Bank of Iceland ("CBI"). The Act on the Stability Tax was passed on 3 July 2015. Under the Creditor Proposals Glitnir would make a Stability Contribution to the CBI as described in the MoF Announcement.
Glitnir envisages that the procedure from now to conclusion of a composition would involve the following principal steps. At this stage it is not possible to put a precise timeframe on these steps as this is dependent on the response of the CBI to the exemption request, the extent to which further discussions are required with the CBI or with other Icelandic government agencies and certain necessary official action. Further, there is no guarantee that the necessary exemptions will be granted or that government and other agencies will take the necessary action to enable Glitnir to proceed with a composition on the basis of the Creditor Proposals or otherwise. However, subject to the foregoing, Glitnir intends to launch the composition as soon as reasonably practicable and to conclude the composition before 31 December 2015.
- The CBI responds to Glitnir's for exemption request
- The necessary exemptions are granted
- The Exemption Request is granted
- The Composition Proposal documents are published and the Composition Meeting is convened
- Creditors vote to approve the Stability Contribution to the CBI and related matters
- Creditors vote to approve the composition
- Confirmation hearing before the District Court
- The composition becomes binding either (a) 7 days after the District Court confirms the composition, unless the decision is appealed to the Supreme Court, or (b) on the date of the Supreme Court decision (if the District Court decision is appealed and subsequently confirmed by the Supreme Court)
- Payment of Stability Contribution by Glitnir to the CBI
- Recognition of the composition in the U.S., in the pending chapter 15 proceedings, and other relevant jurisdictions is sought
- Composition distribution to creditors – the winding-up is concluded.
On 10 July 2105 Glitnir made a status report to the US Bankruptcy Court. A copy of that report can be found at the link below:
The Ministry of Finance and Economic Affairs' announcement can be found at the link below:
The Ministry of Finance and Economic Affairs' announcement in relation to the Stability Tax can be found at the link below:
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
The Winding-Up Board of Glitnir hereby presents the Financial Information for Q1 2015.
Hagfræðingarnir, Dr. Ásgeir Jónsson og Dr. Hersir Sigurgeirsson, kynntu á blaðamannafundi í dag í Reykjavík skýrslu er þeir nefna „Drög að uppgjöri". Í henni er fjallað um hvaða kostir eru í stöðunni til þess að ljúka slitameðferð föllnu bankanna og greiða út kröfur án þess að raska greiðslujöfnuði Íslands.
Allur kostnaður við gerð skýrslunnar var greiddur af slitastjórn Glitnis, sem óskaði eftir gerð hennar í upphafi árs. Höfundar bera sjálfir alla ábyrgð á ályktunum og niðurstöðum í skýrslunni.
The report, „An Outline of a Resolution", was presented today at a press conference in Reykjavík, by its two authors, economists Dr. Ásgeir Jónsson and Dr. Hersir Sigurgeirsson. The report charts up the possibilities for the estates of the failed Icelandic banks to pay out claims, without adversely affecting the balance of payment situation of Iceland.
The Winding-up Board of Glitnir requested and financed the making of the report. Opinions and conclusions in it are at the sole responsibility of the authors.
Here below is an English summary of the Icelandic report.
Glitnir hereby announces its intention to dispose of its K/S portfolio and its shares in the Luxembourg-based asset manager, Reviva Capital S.A. Glitnir has mandated KPMG to assist in the sales process and interested parties should contact the relevant individuals below.
The next creditors' meeting is scheduled for Tuesday, 8 September 2015, at 10:00 am at Hilton Reykjavík Nordica Hotel, Suðurlandsbraut 2, Reykjavik, Iceland. Creditors in the winding-up process of Glitnir hf. are entitled to attend the meeting.
Glitnir hereby presents the Statement of Assets and Liabilities as of 31 December 2014 and the audited Financial Statements 2014. The presentation also includes a summary of Glitnir´s Current Business plan (BP) which is based on an opening position of 31 December 2014.
Due to the open creditors' meeting on 3 March 2015 the Winding-up Board of Glitnir hf. will not issue new notices of successful transfers from 18 February 2015 until, and including, 3 March 2015. The open creditors' meeting will not affect other notices sent from the Winding-up Board or its transfer agent, Epiq Bankruptcy Solutions, LLC, in the transfer process of requested transfers. Notices of successful transfers will be issued again from 4 March 2015.
The Winding-up Board of Glitnir hf announces, in response to press commentary about its subsidiary Islandsbanki hf, that there is continuing non-binding interest from a number of potential purchasers of Islandsbanki hf, but no sale is imminent. Discussions are continuing with interested parties.