Glitnir HoldCo ehf. („Glitnir“) and LBI ehf. („LBI“) have signed a settlement agreement concerning a disputed guarantee granted by Glitnir to LBI in relation to a loan which LBI made to a company called
Pursuant to the settlement, Glitnir will accept LBI’s claim, as an unsecured claim pursuant to Article 113 of the Bankruptcy Act No. 21/1991, for the total amount of 13.5 bn ISK.
Glitnir will also withdraw the claim lodged by Glitnir in the Winding-up procedure of LBI, which was lodged as a proprietary claim pursuant to Article 109 of the Bankruptcy Act No. 21/1991.
Further information concerning payment to noteholders due to this settlement will be provided by either party in due course.
On 11 May 2017, the Supreme Court of Iceland found against LBI in the rescission case against LGT Bank Ltd.
The Court affirmed the ruling of the District Court of Reykjavik and principally the same grounds.
The Court found that the payment appeared ordinary under the circumstances as the terms of the bonds stated that LBI could buy back securities without limitation, that LBI actually did so to a substantial degree between 2006 and 2008. The Court furthermore supports its decision on the basis that financial institutions routinely purchase their own bonds before maturity.
Cost is not awarded to either side.
LBI is currently reviewing the effects of Supreme‘ s Court ruling on remaining 18 voiding/bond buy-back cases.
LBI's Financial Statement for 2016 has now been released on LBI’s web under https://www.lbi.is/financial-info/.
LBI will host an investor call to present and discuss the results tomorrow Thursday 20 April at 12:00 Reykjavik (GMT), 13:00 London (BST) and 08:00 New York time (EDT). The presentation for tomorrow's call is also available on LBI's web under https://www.lbi.is/financial-info/.
The Annual General Meeting of LBI ehf., reg. no. 540291-2259, is hereby convened to be held at Hilton Reykjavik Nordica, Sudurlandsbraut 2 in Reykjavik on 27 April 2017. The meeting will start at 10.00 am.
With reference to press releases issued by the Central Bank on 12 and 23 March 2017, the Central Bank offers to purchase offshore króna assets as these are defined in the Act on the Treatment of Króna-Denominated Assets Subject to Special Restrictions, no. 37/2016, in cash and for euros, at an exchange rate of 137.5 krónur per euro.
Trade requests must be received by Morgan Stanley by the end of
The announcement from the Central Bank of Iceland can be found here.