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Claims lodged against the bank may be transferred and the holder of a claim transferred shall also enjoy the rights against the bank provided for in Articles 109-114 of the Bankruptcy Act, cf. Article 115 of the Act.
Yes, with certain exceptions. The Winding-Up Board will need to stop recognizing transfers of claims during the period beginning at least three (3) weeks before the first distribution date, and otherwise as needed in order for the Winding-Up Board to be able to review and process the claims registered and make payments. The exact periods of time during which transfers will not be recognized are subject to change at the discretion of the Winding-Up Board.
Under Icelandic law a claimant is permitted to sell its claim. However, the Winding-Up Board will only recognize such a transfer and accordingly update the claims register periodically if the Winding-Up Board is notified of the transfer by both the buyer and the seller and the transfer is perfected in accordance with the procedures set out in this FAQ section such that the Winding-Up Board has received clear indication of whom is now entitled to the proceeds of the claim that was transferred. Transfers by any other means will be received by the Winding-up Board but not processed until distribution from the bank´s estate takes place.
The Winding-up Board takes no position as to the validity of a claim to be transferred. Confirmation that a claim has been traded in accordance with the procedures promulgated by the Winding-Up Board does not constitute evidence of a valid claim. The parties to the transfer accept the risk that the claim being transferred may ultimately be rejected by the Winding-Up Board. The Winding-Up Board reserves all rights with respect to any transferred claims, including the right to reject such claim.
If you wish to trade or transfer your claim, including one related to Landsbanki Bonds, the Winding-Up Board should be notified of the transfer by the submission of the Claim Transfer Request Form, completed by both the original holder of the claim and the proposed new holder of the claim, and you must provide the Winding-Up Board with all required signature verification information and payment of a fee of:
$2,000 for each proposed transfer of the full asserted amount of a claim; or $4,000 for each proposed transfer of a partial asserted amount of claim. The Winding-Up Board has established these fees to defray the costs associated with administering claim transfers.
The Winding-Up Board has implemented certain changes to the timeline of the processing of claim transfers which take effect immediately. These changes are noted in the relevant sections of these FAQs.
Note the Claim Transfer Request Form has recently been amended. Transfer parties should use the amended Claim Transfer Request Form for all new transfer request which can found at http://www.lbi.is/Home/Claims/Transferring-of-Claims/.
In addition to submitting a properly completed Claim Transfer Request Form, the parties must also submit valid signature verification documents and pay the transfer fee in order for the transfer to be processed. Signature verification documentation for both the Transferor and Transferee is required to complete any transfer. All signature verification documents must be written in either Icelandic or English.
Parties submitting a Claim Transfer Request Form must include evidence for signature verification purposes as follows: (a) for corporate entities, board resolutions or equivalent resolutions based on corporate form that contain the following: (i) specimen signatures of the person(s) who sign the claim transfer form (ii) an authorizing signature by someone other than person(s) who sign the claim transfer form (iii) a statement granting the “authorized signatories” the power to act on behalf of the corporate entity (iv) the corporate entity for which the documents are provided must be the same corporate entity that is a party to the transfer in question (v) medallion or other form of certified signature deemed acceptable by the Winding-Up Board in writing; and (b) for individuals, photocopy of a passport of other state or national identification card or other form of evidence deemed acceptable by the Winding-Up Board in writing. All amounts reflected in the Claim Transfer Request Form will be converted to Icelandic Krona using the conversion rate specified by the Winding-Up Board (See FAQs).
Checks should be made payable to "Epiq Bankruptcy Solutions, LLC, as Agent to Landsbanki Islands hf." and shall include the name of the transferor, transferee and the claim reference number. Wire transfers may be made using instructions to be provided upon request by contacting Epiq at +1 646.282.2500.
The Winding-Up Board takes no position as to which party to a proposed claim transfer is responsible for the payment of the above-referenced fees.
The Winding-Up Board is unable to allow the unblocking and reblocking of Landsbanki Bond positions in connection with claim transfers. The Winding-Up Board will maintain its claim system so as to reflect all properly effectuated transfers. The Winding-Up Board expects to make payments on account of transferred claims by utilizing the disbursement information for the Transferee that is provided in the Claim Transfer Request Form.
If the Claim Transfer Request Form and signature verification documents submitted are deemed defective by the Winding-Up Board, the transfer parties will be notified of such defects via e-mail and they will have ten (10) days from the date of the email to submit corrected documents. The parties will be requested by Epiq to confirm receipt of the emailed Notice of Defective Transfer. Confirmation e-mails should be sent to Epiq at landsbanki@epiqsystems.com. In the absence of confirmation from both parties within two (2) New York business days of the date of the e-mailed Notice of Defective Transfer, Epiq will send hard copies of the Notice of Defective Transfer to each party. A properly completed Claim Transfer Request Form that is not accompanied by valid signature verification documentation or is missing payment of the transfer fee on the date the hard copy Claim Transfer Request Form is received will be considered defective.
If the transfer parties fail to cure all defects within the ten (10) day cure period, the transfer will be deemed “withdrawn” and the parties will receive a Notice of Withdrawn Transfer sent via e-mail. If the parties submit corrected documents within the ten (10) day cure period but the transfer is still defective, the ten (10) day cure period will continue to run until either the transfer defects have been fully cured or the cure period expires and the transfer is withdrawn.
Parties submitting a Claim Transfer Request Form must include evidence for signature verification purposes as follows: (a) for corporate entities, board resolutions or equivalent resolutions based on corporate form that contain the following: (i) specimen signatures of the person(s) who sign the claim transfer form (ii) an authorizing signature by someone other than person(s) who sign the claim transfer form (iii) a statement granting the “authorized signatories” the power to act on behalf of the corporate entity (iv) the corporate entity for which the documents are provided must be the same corporate entity that is a party to the transfer in question (v) medallion or other form of certified signature deemed acceptable by the Winding-Up Board in writing; and(b) for individuals, photocopy of a passport of other state or national identification card or other form of evidence deemed acceptable by the Winding-Up Board in writing.
The Winding-Up Board is unable to make payments on account of transferred Landsbanki Bond claims through the depository system (i.e., DTC, Euroclear, Clearstream or other regional depository). The Claim Transfer Request Forms relating to transfers of Landsbanki Bond claims must, therefore include information that is sufficient to allow the Winding-Up Board to make a cash or in-kind payment to the Transferee directly.For full transfers, the transfer is for the entire amount of the claim including interest, penalties, fees or other costs associated with the claim. The Transferee assumes the risk that the Winding-Up Board may have already rejected the claim in whole or in part. The amount to be transferred can never exceed the decision amount and the Transferee cannot object to any decision the Winding-Up Board has already made once the initial objection period for that decision has passed.
The Claim Transfer Request Form requires that the Transferor and Transferee specify whether the claim to be transferred is for the full amount of the asserted claim or a partial amount of the asserted claim. In the case of a partial claim transfer, the total amount of the “original” claim must be stated, as well as the proposed partial amount of the claim that is proposed to be transferred.
For partial transfers, you MUST list the total amount of claim in its original currency as originally filed on the Claim Transfer Request Form in order for the transfer to be valid. Additionally, you SHOULD provide the total amount of claim that is currently owned by the Transferor. Where the Transferor previously bought a partial amount of the claim, please use the transfer amount listed on the relevant Notice of Successful Transfer for that transferred portion. Where the Transferor previously sold a partial amount of the claim, please deduct the traded portion(s) of the claim and list only the amount of the claim the Transferor currently owns. Finally, you MUST also provide the total liquidated amount to be transferred. Partial transfers may be broken out into principal, interest, and costs portions. Furthermore, if a claim, as originally filed, had multiple ISINs or blocking numbers, that claim can be partially transferred on a per-ISIN or per-blocking number basis.
If no principal, interest and/or cost amounts are provided, a transfer of the amount noted in the ‘Total Amount to be Transferred’ section of the Claim Transfer Request Form will be effectuated in proportion to the amount of claim in its original currency as originally filed including a proportion of interest, penalties, fees or other costs associated with the claim. Any partial transfers that list the decision amount as the total amount of claim or that list a daily accruing interest rate as part of the transfer will be deemed defective. Upon the successful completion of a partial claim transfer, the Winding-Up Board will create a new claim record identifying the transferred claim, and the "original" claim will be updated correspondingly. Given the increased burden on the Winding-Up Board to administer and track partial claim transfers of a single claim, the fee required to effectuate a partial claim transfer is $4,000 for each partial transfer.
The Winding-Up Board will not allow the unblocking of Landsbanki Bond positions in connection with claim transfers. Accordingly, the Winding-Up Board will not seek the unblocking and re-blocking of the appropriate Landsbanki Bond position to correspond with the proposed claim transfer. The Winding-Up Board intends to maintain its claim system so as to reflect all properly effectuated transfers. The Winding-Up Board expects to make payments on account of transferred claims by utilizing the disbursement information for the Transferee that is provided in the Claim Transfer Request Form.
Claim Transfer Request Forms and related materials should be sent to:
Winding-Up Board of Landsbanki Islands hf.
c/o Epiq Bankruptcy Solutions,
LLC 757 Third Avenue New York,
NY 10017 U.S.A.
Attn: Landsbanki Claim Transfer Agent
Or
The Winding-Up Board of Landsbanki Islands hf.
c/o Epiq Systems Ltd.
11 Old Jewry, 4th Floor
London EC2R 8DU
Attn: Landsbanki Claim Transfer Agent
The Winding-Up Board will not accept any concurrent transfers of a claim. A transfer of a claim or portion thereof must settle – i.e., the transfer must be reflected in the Winding-Up Board‘s claim system with a status of "Confirmed" - before that claim or portion thereof can be traded again (in whole or part).
Parties to a proposed claim transfer that is determined by the Winding-Up Board as properly submitted will be notified and will have ten (10) days from the date of service of such notice to object to the transfer. If both the Transferor and Transferee have agreed to waive the objection period, the parties will have three (3) das from the date of the last waiver e-mail to object to the transfer. Upon receipt of an objection from the Transferor and/or Transferee to the proposed transfer, the status of the proposed transfer will be updated by the Winding-Up Board to "Withdrawn". If no objection is received from the Transferor or Transferee, the proposed claim transfer will be updated by the Winding-Up Board in the claim system to a status of "Confirmed". The transfer will be recognized by the Winding-Up Board, and the Transferee will be listed as the new holder of the "original" claim (in the case of a full claim transfer) or the holder of a new claim (in the case of a partial claim transfer). In the case of a partial claim transfer, the amount of the "original" claim will be updated in light of such transfer..
If a creditor possesses more than one composition claim against a debtor, the claims shall be added together and regarded as one single composition claim, without regard to their origin or other facts. According to Article 30 (4) of the Act on Bankruptcy etc., a creditor who possesses more than one claim against the debtor and who has assigned such a claim to another party three months before the reference date or later, the claims, added together, shall also be regarded as one composition claim, but the assignee shall be entitled to a share of the composition claim in proportion to his share. The same procedure shall be applied in the event of any other transfer.
Please address queries in the first instance to the Winding-Up Board at windingupproceedings@lbi.is or you may contact Landsbanki Islands’s claims agent Epiq Bankruptcy Solutions, LLC by telephone at +1 646.282.2400 or email at landsbanki@epiqsystems.com .
If by mail please send queries to the following address:
Epiq Bankruptcy Solutions,
LLC 757 Third Avenue 3rd Floor New York,
NY 10017 U.S.A.
Attn: Landsbanki Claim Transfer Agent
Parties to a claim transfer request that is determined by the Winding-Up Board as properly submitted in hard copy form (this includes confirmation of payment of the transfer fee and receipt of valid signature verification documentation for both the Transferor and Transferee) will be notified by way of a Notice of Proposed Transfer sent via e-mail. The parties will have ten (10) days from the date of the email to object to the transfer. The parties will be requested by Epiq to confirm receipt of the emailed Notice of Proposed Transfer. Confirmation e-mails should be sent to Epiq at landsbanki@epiqsystems.com. In the absence of confirmation from both parties within two (2) New York business days of the date of the e-mailed Notice of Proposed Transfer, Epiq will send hard copies of the Notice of Proposed Transfer to each party.
During the period of ten (10) days, both parties to the transfer may waive the objection period. In order to do so, Epiq must receive an email from both the Transferor and the Transferee at landsbanki@epiqsystems.com stating that they wish to waive the objection period. Upon receipt of both waiver emails, the objection period will be shortened from ten (10) to three (3) days from the date of the last waiver email. Two (2) New York business days after the expiration of the shortened objection period the transfer will be recognized by the Winding-Up Board and Epiq will issue the Notice of Successful Transfer via e-mail to both transfer parties.
Upon receipt of an objection from the Transferor and/or Transferee to the proposed transfer, the transfer request will be deemed “withdrawn” and a Notice of Withdrawn Transfer will be sent to both parties via e-mail.
In the absence of any objections during the ten (10) day period, or if during that period both parties agree to waive the objection period, the transfer will be deemed “confirmed” two (2) New York business days after the expiration of the objection period or, if applicable, two (2) New York business days after the expiration of the shortened objection period. The Transferee will be listed as the new holder of the “original” claim (in the case of a full claim transfer) or the holder of a new claim (in the case of a partial claim transfer). In the case of a partial claim transfer, the amount of the “original” claim will be updated in light of such transfer. For all claims reflected in the Winding-Up Board’s claim system as “Confirmed,” Epiq will notify the Transferor and Transferee of the successful claim transfer by sending a Notice of Successful Transfer to the parties via e-mail.
If the Claim Transfer Request Form and signature verification documents submitted are deemed defective by the Winding-Up Board, the transfer parties will be notified of such defects via e-mail and they will have ten (10) days from the date of the email to submit corrected documents. The parties will be requested by Epiq to confirm receipt of the emailed Notice of Defective Transfer. Confirmation e-mails should be sent to Epiq at landsbanki@epiqsystems.com. In the absence of confirmation from both parties within two (2) New York business days of the date of the e-mailed Notice of Defective Transfer, Epiq will send hard copies of the Notice of Defective Transfer to each party. A properly completed Claim Transfer Request Form that is not accompanied by valid signature verification documentation or is missing payment of the transfer fee on the date the hard copy Claim Transfer Request Form is received will be considered defective.
If the transfer parties fail to cure all defects within the ten (10) day cure period, the transfer will be deemed “withdrawn” and the parties will receive a Notice of Withdrawn Transfer sent via e-mail. If the parties submit corrected documents within the ten (10) day cure period but the transfer is still defective, the ten (10) day cure period will continue to run until either the transfer defects have been fully cured or the cure period expires and the transfer is withdrawn.
The Transferor and Transferee will be requested to confirm (via e-mail) receipt of specific e-mail notices which are sent by Epiq and referred to in these FAQs. If Epiq does not receive a confirmation from the parties within two (2) New York business days of the date of the relevant notice, the notice will be sent to the parties in hardcopy form. Please note that this will not apply in relation to a Notice of Successful Transfer or to a Notice of Withdrawn Transfer for which only e-mail notification will be sent. Also note that in connection with a Notice of Proposed Transfer, in addition to acknowledging receipt of the notice, both parties to the transfer may waive the objection period. In order to do so, Epiq must receive an email from both the Transferor and Transferee at landsbanki@epiqsystems.com stating that they wish to waive the objection period. Upon receipt of both waiver emails, the objection period will be shortened from ten (10) to three (3) days from the date of the last waiver email. Two (2) New York business days after the expiration of the shortened objection period, the transfer will be recognized by the Winding-Up Board and Epiq will issue the Notice of Successful Transfer via e-mail to both transfer parties.