News


14.11.2018

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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01.10.2018

UNSCHEDULED PAYMENT OF € 9.5 MILLION CONFIRMED

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 9.1(c) of the Conditions, and in furtherance of the Unscheduled Payment Notice issued on the 24 September 2018, the Issuer hereby notifies the Bondholders that the final amount of Euro Equivalent Available Cash paid on the 5 October 2018 will be €9,500,000.

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24.09.2018

Unscheduled payment of €9.5 million

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 Condition 9.2(a)(ii) of the Conditions, and in furtherance of the Unscheduled Payment Notice issued on the 11 September 2018, the Issuer hereby notifies the Bondholders of payment which will be applied in partial redemption of the Bonds on the Payment Date of 5 October 2018. The Euro Equivalent Available Cash for this payment is € 9,500,000.

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11.09.2018

Unscheduled payment of €9.5 million

On 11 September 2018, LBI and the UK Financial Services Compensation Scheme (“FSCS”) agreed to discontinue proceedings at the District Court of Reykjavik where FSCS had claimed compensation of its interest expense from 8 October 2008 until 22 April 2009 under a subsidiary guarantee provided by LBI to Heritable Bank prior to its bankruptcy proceedings. The agreement will release from reserves held on escrow for disputed article 113 claims, cash of €9.5 million, and Convertible Notes of €4.3 million which will subsequently be cancelled. No consideration has been or will be paid to FSCS in respect of such agreement.

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 October 2018 of €9.5 million.

In accordance with the terms and conditions of the Convertible Notes, further detail will be provided on 24 September 2018.

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22.08.2018

LBI's Management Accounts for Q2 2018

LBI’s Management Accounts for Q2 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 Tuesday 28 August 2018 at 13:00 (GMT), 14:00 (BST) London and 09:00 New York time (EST). The investor call is recorded and will be made available on LBI’s website for those unable to attend.

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