Terms defined in this notice shall be construed in accordance with the conditions set out in the Schedule 1 to the Trust Deed, dated 23 March 2016 and made between the Issuer, the Trustee and the U.S. Trustee (the “Conditions“) (as amended in a noteholder meeting on 28 November 2016).
Pursuant to 9.2(a)(ii) of the Conditions, and in furtherance of the Unscheduled Payment Notice issued on the 14 March 2016, the Issuer hereby notifies the Bondholders of payment which will be applied in partial redemption of the Bonds on the Payment Date of 5 April 2017. The estimated Euro Equivalent Available Cash for this payment is €301,992,221.

The Central Bank of Iceland has concluded an agreement with owners of offshore króna assets subject to special restrictions pursuant to Act no. 37/2016. Under the agreement, the Bank will purchase offshore króna assets from them in the amount of equivalent of close to 90 b.kr. at an exchange rate of 137.5 kr. per euro.

Offshore króna holders that have not made an agreement with the Bank will be invited to do so in the next few days. This would apply for legal entities that hold ISK that were paid into escrow accounts in relation to ISK allocation from LBI in December 2011 against Art. 112 priority claims.

The announcement from the Central Bank of Iceland can be found here

Ruling against LBI ehf. was passed down today in the UK Royal Courts of Justice in a case between LBI ehf as claimant and RZB (Raiffeisen Zentralbank Österreich AG and Raiffeisen Bank International AG) as the Defendants. The dispute concerned the closeout of GMSLA and GMRA contracts as to both whether default notices were adequately served and then subsequently the appropriate valuation of underlying securities. The conclusion of the ruling is that LBI ehf does not have a claim against RZB. RZB had previously irrevocably withdrawn its claim lodged against LBI in Iceland.

The judgement will reduce previously reported expected recoveries under other assets and will also result in expenses for LBI due to costs awarded to the defendants. LBI will review whether to appeal the judgement.

Pursuant to Condition 9.2(a) of the Convertible Notes due 2035, LBI ehf. hereby gives notice of its intention to make an unscheduled payment in respect of the Convertible Notes on 5 April 2017 in an amount currently estimated to be €297 million.

The principal source of cash for this payment is the partial prepayment of Landsbankinn Bonds, which was received by LBI on 14 March 2017.

In accordance with the terms and conditions of the Convertible Notes, further detail will be provided on 23 March 2017.

On 14 March 2017, Landsbankinn fully prepaid the outstanding balance under Bond Series 2020 in the amount of USD 170 million and partially prepaid Bond Series 2024 in the amount of USD 111 million.  The prepayment totals USD 284.1 million, including accrued and unpaid interest (EUR 266.9 million at the exchange rate of 14 March 2017).  LBI expects to announce an unscheduled payment in partial redemption of the Convertible Notes shortly.

LBI ehf. (formerly Landsbanki Íslands hf.) and PricewaterhouseCoopers (PwC) hereby make known that an agreement has been reached with the effect that LBI´s ehf. case against PWC, no. E-3162/2012, which has been in process before the Reykjavík District Court, has been cancelled.

In the assessment of LBI ehf. and PwC the conclusion resulting from this settlement is acceptable under the circumstances. It will avoid unforeseeable expenditures arising from continuing litigation for an unpredictable period, enabling the parties now to concentrate better on their day-to-day activities.

As provided for in Act No. 37/2016 on the treatment of króna-denomiated assets subject to special restrictions, which came into effect in May 2016, ISK balances that had been on escrow accounts since the partial payments to priority creditors of LBI ehf. (LBI) were made in 2011 were transferred to an account subject to special restrictions in August 2016.

LBI now intends to convert ISK balances on these accounts to EUR and subsequently pay out to individuals.

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Pursuant to 9.1(c) of the Conditions, and in furtherance of the Payment Notice issued on the 5 December 2016, the Issuer hereby notifies the Noteholders that the final amount of Euro Equivalent Available Cash paid on the 15 December 2016 will be €238,538,233.

Terms defined in this notice shall be constructed in accordance with the conditions set out in the Schedule 1 to the Trust Deed, dated March 23rd, 2016 and made between the Issuer, the Trustee and the U.S. Trustee (the “Conditions“) (as amended in a noteholder meeting on 28 November 2016).

Pursuant to the Condition 9.1(b) of the Conditions, the Issuer hereby notifies the Noteholders of a payment which will be applied in partial redemption of the Notes on the Payment Date of 15 December 2016. The estimated Euro Equivalent Available Cash for this payment is € 238,884,851.

On 5 December 2016, Landsbankinn prepaid USD 41.0 million of Bond Series 2020.  The total amount paid is USD 41.2 million, including accrued and unpaid interests (EUR 38.7 million at the exchange rate of 30 November 2016). The payment will be included in the Scheduled Payment on 15 December 2016.

A meeting of Bondholders on 28 November 2016 attended by 81.12% of bondholders approved to change the semi-annual scheduled principal payment dates of the LBI Convertible Notes to 15 June and 15 December. The next scheduled payment will consequently be 15 December 2016.

Minutes from the meeting are available here.

LBI held an extraordinary general meeting on 28 November 2016 which had shareholders or shareholder representatives of 79.67% of the company’s share capital attending.  A proposal from the Board of Directors on the indemnification of providers of various advisory, administrative, committee or consultative services to LBI ehf. was approved in the meeting.

Minutes from the meeting are available here.

LBI has made its Management Accounts for Q3 2016 available under Financial Information on this website. LBI will host an investor call to present and discuss the results on Tuesday 29 November 2016 at 13:00 (GMT) and 08:00 New York time (EST). The investor call is recorded and will subsequently be made available on LBI’s website for those investors unable to attend.

Notice is hereby given that LBI ehf. (“LBI”), pursuant to paragraph B(3) of Annex 1 to the Terms and Conditions of LBI’s EUR 2,041,382,201 Convertible Bonds due 2035, hereby nominates Miss Sarah Smith, who is a partner in the law firm of Akin Gump LLP, Eighth Floor, Ten Bishops Square, London, E1 63G, to take the chair at the meeting of Bondholders to be held on 28 November 2016 at 10.00a.m. (Icelandic time) at Hotel Hilton Nordica, Suðurlandsbraut 2, 108 Reykjavik, Iceland.

On 25 November 2016, Landsbankinn partially prepaid Bond Series 2020 in the amount of USD 36 million principal, together with interest accrued and unpaid a total of USD 37.2 million (EUR 33.3 million at the exchange rate of 30 September 2016).

LBI’s management accounts for Q3 2016 will be released on this website at the close of business Icelandic local time on 28 November 2016.

As of today 18 November 2016, LBI ehf. has received full repayment of all outstanding loans to a Canadian Fishery company for a total of CAD 137 million.

Notice is hereby given by the Issuer that, pursuant to the provisions of Annex 1 of the terms and conditions of the Bonds (the "Conditions"), a meeting (the "Meeting") of the Bondholders will be held on 28 November 2016 at 10.00a.m.

The Board of Directors of LBI ehf., reg. no. 540291-2259, hereby gives notice that an extraordinary general meeting of LBI ehf. will be held at Hilton Reykjavik Nordica at Sudurlandsbraut 2 in Reykjavik on 28 November 2016. The meeting will start at 12.00 pm.

The period for beneficial owners of old LBI securities issued through Deutsche Bank Trust Corporation Americas (“DBTCA”) to re-register their positions into LBI Convertible Notes has now expired.