At a shareholders‘ meeting of LBI ehf. (the “Company”), which the Winding-up Board held today, 19 February 2016, in accordance with the composition agreement of the Company (the “Composition Agreement”) and based on the statutory authority of the Winding-up Board pursuant to the second sentence of paragraph 4 of Article 101 of the Act on Financial Undertakings No. 161/2002, c.f. paragraph 3 of Article 103 a of the same Act, new articles of association (the “Articles”) were adopted by the Company.

Yesterday, February 16, 2016, the Winding-up Board of LBI hf. filed a motion in the United States Bankruptcy Court, Southern District of New York, for an order recognizing and enforcing the order of the District Court of Reykjavik confirming the company´s composition agreement, and granting related relief. A copy of the notice is available here. 

In relation to preparation of the issuance of the Bonds and the Shares (together the “Securities”) as a part of the fulfilment of the Composition Agreement of LBI, creditors entitled to receive Securities in accordance with the conditions of the Composition Agreement have been instructed to provide certain information and documents.

In accordance with the Composition Agreement for LBI, which became binding upon the end of the time limit to appeal according to Article 59 of the Act on Bankruptcy etc. No. 21/1991 on 25 December 2015, LBI has now executed the de minimis payments to its creditors.

In a letter from the Central Bank of Iceland, dated 11 January 2016, LBI hf. was granted exemptions from the capital controls pursuant to the Act No 87/1992 on Foreign Currency with respect to the settlement towards creditors based on the company´s Composition Agreement. The letter also stated that the creditors of LBI hf. had been granted certain exemptions in relation to payments received pursuant to the Composition Agreement.

In preparation for De Minimis Payments, the Winding-up Board of LBI hf. (the “WuB”) will set a claim transfer moratorium beginning on February 2, 2016.  The LBI hf. Transfer Register will not be updated for any claim transfer that has not received a Notice of Successful Transfer (an “NOST”) by February 2, 2016.

The Composition Agreement for LBI hf. became binding upon the end of the time limit to appeal according to Article 59 of the Act on Bankruptcy etc. No. 21/1991 on 25 December 2015.

Today, 11 January 2016, LBI hf. was granted an exemption by the Central Bank of Iceland from the capital controls under Act No. 87/1992, in accordance with and based on the Composition Agreement of LBI hf., which became effective on 25 December 2015.

The Composition Agreement of LBI hf., which was confirmed by the District Court of Reykjavik on 18 December 2015, has become final and binding under Icelandic law as the appeal period provided for under Article 59 of the Act on Bankruptcy etc. No. 21/1991 lapsed on 25 December without any appeal being filed.

The Composition Proposal of LBI hf., which was approved at the Composition Voting Meeting on 23 November 2015, has as of today 18 December 2015 been confirmed by the District Court of Reykjavik as the Composition Agreement of LBI hf.

On Tuesday, 15 December 2015, at 10:00 a.m., a hearing will be held in the District Court of Reykjavik, Courtroom No. 301, at Laekjartorg Square, Reykjavik, Iceland, to address the Request of the Winding-up Board of LBI hf. for confirmation the composition proposal of LBI hf., (formerly Landsbanki Íslands hf.), Reg. No. 540291-2259.

A creditors' meeting of LBI hf. was held today at Hilton Hótel Nordica in Reykjavík to vote on the company's composition proposal.

On 11 November 2015 the Winding-up Board received a letter from the Central Bank of Iceland, in response to LBI´s exemption request based on the Composition Proposal, giving its provisional approval to that request and the intended Stability Contribution.

In accordance with the agreement of 18 September 2015, Landsbankinn hf. has purchased of LBI its Landsvirkjun Bond and the purchase price has been paid.

Last Wednesday, 4 November, the Icelandic Parliament passed law amending the Act on Income Tax, the Act on Special Levy on Financial Undertakings, the Act on Financial Undertakings and Act on Stability Levy (composition of the estates of failed financial undertakings).

In preparation for the anticipated meeting to vote on the intended composition proposal, the Winding-up Board of LBI hf. (the “WuB”) strongly encourages creditors to submit all outstanding claim transfer requests to Epiq Systems, as soon as possible.

“Consultation between Central Bank and Minister of Finance and Economic Affairs on exemptions for the three failed banks' estates

Last Monday LB issued bonds under its Euro Medium Term Note (EMTN) program of total EUR 300m.  In accordance with LBI‘s and LB‘s agreement from 18 September 2015 LB will use the proceeds from this Bond issuance to prepay (i) LB Bond tranches B1, B2 and B3 with maturity 9 October 2016 and (ii) 45% of LB Bond tranches C1, C2 and C3 with maturity 9 October 2018.   LB‘s prepayment is expected to happen within the next 3-4 days.     

Landsbankinn hf. has today issued €300 million of senior unsecured bonds, equivalent to around ISK 43 billion.  The bonds have a 3 year maturity with a fixed 3.00% coupon and were priced at terms equivalent to 295 basis point spread above mid-swaps in euros. 

At the creditors‘ meeting on 2 October and in other presentations it has been stated that the intention was to hold a meeting to vote on the intended composition proposal on 5 November. It is now clear that this meeting cannot take place at such time. It is currently expected that the meeting will be held on 17 November 2015. The timing of sending of composition documents to creditors will change accordingly.