FAQ Winding-up Board

Claims may be corrected without restriction after being lodged as long as the time limit for lodging claims has not expired. In such instances, the new claim is deemed to have replaced the previous one. Once the time limit for lodging claims has expired, a claim may be corrected as long as such correction does not involve an increase to the claim, change in its priority of higher ranking or other change which is liable to prejudice the legal status of other creditors. If a claim is fully or partly rejected by the Winding-up Board due to insufficient grounds or documentation, the creditor concerned will be notified thereof as promptly as possible. The creditor concerned shall then have an opportunity to provide further grounds or documentation aimed at having the claim recognised.

According to the third and fourth paragraphs of Article 103a of the Act on Financial Undertakings, No. 161/2002, as amended by Act No. 44/2009, the Winding-up Board is entrusted with seeking composition with creditors in co-operation with the Resolution Committee. Specific provisions of the Act on Bankruptcy etc., No. 21/1991, which are referred to in the above-mentioned Act, also apply to composition. It is too early for any decision on seeking composition until, on the one hand, the claims procedure has been concluded and any disputes which may arise as a result have been resolved and, on the other hand, until the bank’s final asset position has become clear or fully foreseeable.

Those parties who have lodged claims against Landsbanki Íslands hf. and their agents are entitled to attend the meeting. Creditors (or authorized representative) will need to provide identification in the form of a passport, and, in the case of an authorized representative or company representative, a power of attorney and / or other appropriate evidence of authority.

Claimants can contact the Winding-up Board via email: .

No. The exact timeframe for distributions is not yet known.

The distribution may take the form of cash and / or securities.

The claims list is available at http://lbi.is/creditor-information/Claims.aspx. Access to this webpage requires a user name and password which have been posted to claimants or their agents if applicable. Claimants can contact the Winding-up Board on to acquire username and password to be able to access the website.

The Winding-up Board has sent to claimants notices on the decisions on claims against the bank. If claimants have yet to receive their notice it should be on its way by mail. Information is provided in the notice about where to access the claims list along with usernames and password. A printout of the claims list is accessible at Austurstræti 16, 101 Reykjavik. Claimants are able to purchase a copy of the claims list for ISK 7,500.

Please note that claimants can object to to the Winding-up Boards´s decision on their own claims as well as other claims. Forms intended for submitting objections, available at http://lbi.is/creditor-information/Claims.aspx, are to be filled out and delivered to the Winding-up Board either prior to or at the meeting on 24 February 2010. Claimants can not object to the Winding-up Board´s decision on their claim if such decision has been postponed. Claimants can nevertheless at a later stage object to the decision of the Winding-up Board on their claim when such decision will be made.

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. The Winding-up Board is looking into this matter and is considering the best possible way to ensure secure and efficient way for claims transfer. In that respect the Winding-up Board is considering to make available a Claim Transfer Form on the bank´s website. Further information on the transfer of claims will be published on our website in the near future.

When bonds are blocked, they are “frozen” by the relevant depository to ensure that they are prevented from being traded. The depositories will provide information to the Winding-Up Board about blocked positions, and the blocking number will provide a link from a particular bond position to a particular claim. This will help the Winding-Up Board confirm the ownership of a bond position that is included in a bond claim form.

As a general matter, no. The Winding-Up Board will consider on a case-by-case basis requests to unblock a bond position, however, requests to unblock or cancel a prior request to block a bond position have thus far been granted only in limited circumstances, such as manifest error. In any scenario in which the Winding-Up Board consents to a request to unblock or cancel a prior request to block, such consent should not be construed as a statement by the Winding-Up Board regarding the value (if any) of the bonds to be unblocked.

If you filed a claim on or before the deadline (i.e., 30 October 2009), you do still have the opportunity to obtain a blocking number. To obtain the number you should first contact Epiq Bankruptcy Solutions, the Winding-Up Board´s Claim Transfer Agent, by telephone at +646.282.2400 or email via landsbanki@epiqsystems.com. Epiq will notify the relevant depository (i.e., Euroclear, Clearstream or DTC) that the Winding-Up Board has agreed to allow you to obtain a blocking number. You will then be required to seek a blocking number through your accountholder according to the standard procedures required by the relevant depository. Epiq cannot assist you in that part of the process. Please note that failure to provide a blocking number as part of your claim – for any reason – will potentially affect the Winding-Up Board’s ability to verify and, therefore, properly determine the validity of your claim related to Landsbanki Bonds.

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:

• $500 for each proposed transfer of the full asserted amount of a claim; or • $1,000 for each proposed transfer of a partial asserted amount of claim.

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 +646.282.2400.

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.

The Winding-Up Board will notify you if additional information is required to cure a deficiency in the Claim Transfer Request Form. In such case, the parties involved in the transfer must submit information in writing to the Winding-Up Board curing the proposed defects within thirty (30) days to cure the deficiencies or the proposed transfer will be deemed “withdrawn.”

Parties submitting a Claim Transfer Request Form must include evidence for signature verification purposes as follows: (a) for corporate entities, (i) board resolutions or equivalent resolutions based on corporate form, and (b) 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.

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. 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 $1,000 for each partial transfer.

10The 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 twenty-one (21) days from the date of service of such notice 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 or you may contact Landsbanki Islands’s claims agent Epiq Bankruptcy Solutions, LLC by telephone at +1 646.282.2400 or email at . 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