Partial settlement of the D&O cases

In 2011 and 2012 LBI ehf. (formerly Landsbanki Íslands hf.) initiated three court cases before the District Court of Reykjavik (cases no. E-3826/2011, E-3827/2011, and E-991/2012) against four former employees of LBI, four former directors of the company (case no. E-991/2012 only) and 26 insurers of directors' and officers' liability insurance policies which were purchased by LBI in 2008.

LBI has reached a settlement agreement with 24 of the 26 insurers, which represent 47,8% of the above directors' and officers' liability insurance policies. The 24 insurers which are part of the settlement have been discharged from the three ongoing court cases.

The terms of the above settlement are confidential. Some or all of the funds received in connection with the settlement will be included in the Available Cash which LBI will use in making its next scheduled payment on the Convertible Notes.

As part of the proceedings of the case, but unrelated to the above settlement, LBI withdrew its claims against four former directors of LBI in case no. 991/2012.

All three court cases will continue against four former employees of LBI and the two remaining insurers. 

The main hearing in the above three cases, which started on 29 October 2018, is expected to be finished before the end of November 2018.

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