Frequently Asked Questions

On 7 October 2008, following the continued deterioration in the financial markets, the Financial Supervisory Authority of Iceland ("FME") used powers granted by the Icelandic Parliament with reference to Article 100 of Act. No. 161/2002, as amended, to take control of Landsbanki Islands hf ("Old Landsbanki"). Subsequently, New Landsbanki Bank hf ("New Landsbanki") was created (now “NBI hf.”) and Old Landsbanki’s domestic Icelandic deposits, as well as significant Old Landsbanki assets relating to its Icelandic operations, were transferred to it. New Landsbanki is wholly-owned by the Icelandic Government.

New Landsbanki has taken over all of Old Landsbanki’s domestic Icelandic deposits, together with significant Old Landsbanki assets that were related to its Icelandic operations, such as loans and other claims.

Old Landsbanki retains all liabilities and assets not transferred to New Landsbanki.

New Landsbanki will issue a bond to Old Landsbanki, the face value of which will be the net difference between the assets and liabilities transferred into New Landsbanki from Old Landsbanki, to reflect a fair value asset adjustment verified by an independent third party.

The Resolution Committee has been appointed by the FME (the Financial Supervisory Authority) to supersede the board of directors of Old Landsbanki. The role of the Resolution Committee is to oversee the realisation of assets, maximize the value as much as possible, and retain within Old Landsbanki until a formal process of payment distribution commences.

The appointment of a Resolution Committee will help maximise asset realisation for creditors, as well as help co-ordinate communication with creditors and other stakeholders.

According to article 5 of Act 128/2008, the FME may limit or prohibit the disposal of the financial undertaking’s capital or assets. With reference to the legislation, for the time being no coupons or bonds will be paid until a formal payment process is put into place. This includes all payments due on foreign denominated bonds issued by Old Landsbanki.

As of today and in the current financial market environment, it is not possible to estimate the total payments to Old Landsbanki’s creditors with any certainty.

No timetable is currently in place in respect of potential payments to creditors. Further details on the timing of asset realisation and payments to creditors will be released when they become available. What is certain is that this process, once established, will treat all creditors equitably according to their claims and will be conducted according to law.

Regular update information will be posted to this website as it becomes available. Information will also be made available through the creditors’ committee process (see below).

An informal creditors’ committee (ICC) representing a broad cross section of financial institutions, international deposit holders, and other creditors has been established. It held its first meeting on 4th November.

The Resolution Committee consulting with the ICC on its plans for managing the assets of Old Landsbanki and making payments to creditors. In this regard, contact has been made with known creditors of Old Landsbanki.

Those creditors of Old Landsbanki wishing to register their interest in this regard are invited to contact Old Landsbanki through the contact details shown on this website.

On Thursday 4 November, the Icelandic Parliament passed new legislation on corporate restructuring that allows for creditors stays. Please refer to this press release on information about the stay. It is envisioned that Landsbanki will change its status under this legislation. This allows for Landsbanki to better protect its assets.

Following the successful first creditors meeting, it is envisioned that there will be a second meeting in the weeks to come.

Further questions can be sent to

Old Landsbanki is pursuing a strategy to maximise the value and realisation of owned subsidiaries and other assets. Old Landsbanki has not, and does not intend, to enter into any unnecessary quick 'fire sale' of subsidiaries or assets. Old Landsbanki intends to develop and pursue a considered strategy for maximising the realisation of assets. Old Landsbanki does not consider that selling assets in the current market environment to be generally consistent with maximising the realisable value of the assets it owns. In certain limited circumstances, selling some overseas assets would be consistent with maximising or protecting the value of subsidiaries or other assets of Old Landsbanki.

To enable Landsbanki to continue to be operated over the medium term.
Further information on the moratorium go to moratorium FAQ