Partial payments to creditors

The Winding-up Board of Landsbanki Islands hf. (LBI) made partial payments to priority creditors in the winding-up proceedings for the third time early in October. In this instance, total payments were equivalent to ISK 82 billion. The bank's first partial payments were made to priority creditors 2 December last year, and amounted to the equivalent of ISK 432 billion. The second partial payments were made in May this year and amounted to the equivalent of ISK 162 billion. In total this means the Winding-up Board has therefore paid close to ISK 677 billion equivalent on aggregate, which amounts to around 50% of priority claims ranking under Article 112 of the Act on Bankruptcy etc. no 21/1991. The amounts reflect gross numbers, including payments into statutory escrow accounts for claims still disputed. The equivalent of ISK 16 billion out of the above-mentioned aggregate number of partial payments have been rebated to LBI out of the statutory escrow accounts, in cases where claims have been finally rejected.

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