On 22 January 2019, LBI settled its dispute with Kas Bank related to the closeout calculations of a GMSLA agreement which had been referred to the District Court of Reykjavik. The reported estimated recovery of LBI‘s net claims against KAS Bank at end of Q3 2018 was EUR 927.4
As a part of the settlement, KAS Bank has withdrawn its lodged Art. 113 claims against LBI with the effect that amounts allocated on escrow towards this disputed claim will be reversed to LBI. The reversals from escrow consist of EUR 910 thousand in cash (from redemption payments and DMP) and EUR 382 thousand of outstanding Convertible Notes.
In 2011 and 2012 LBI
On 28 December 2018, the Reykjavik District Court handed down decisions in the three above referenced D&O-cases. In two of the cases, E-3826/2011 and E-991/2012, the court dismissed LBI’s claims due to uncertainty on whether the loss incurred by LBI had already been compensated by a by a settlement in a court case that LBI had initiated against the former auditors of LBI.
In the third case, E-3827/2011 the Reykjavik District Court handed down a judgement by which individuals as Defendants, the former CEO’s and a managing director were acquitted. The judgement is based on the conclusion that legitimate premises are lacking to place liability for damages to the Plaintiff, as their former employer, with the Defendants. The Insurers as Defendants were acquitted on the grounds that the former CEO’s and managing director were not considered liable against LBI.
Pursuant to 9.1(c) of the Conditions, and in furtherance of the Payment Notice issued on the 7 December 2018, the Issuer hereby notifies the Noteholders that the final amount of Euro Equivalent Available Cash paid on the 17 December 2018 will be €16,035,497.
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 17 December 2018. The estimated Euro Equivalent Available Cash for this payment is € 16,035,969.
LBI’s Management Accounts for Q3 2018 and investor call presentation have been made available on LBI’s website under https://www.lbi.is/financial-info.
LBI will host an investor call to present and discuss the results on Wednesday 28 November 2018 at 13:30 (GMT), 13:30 (BST) London and 08:30 New York time (EST). The investor call is recorded and will be made available on LBI’s website for those unable to attend.