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12.05.2017

LBI has settled outstanding disputes with Glitnir

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 Stytta ehf. The dispute concerned a claim that LBI lodged in the winding-up proceedings of Glitnir and a claim that Glitnir lodged in the Winding-up proceedings of LBI.

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.

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11.05.2017

LBI loses its rescission case against LGT Bank Ltd.

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.

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19.04.2017

LBI's Financial Statement for 2016

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/

More information

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13.04.2017

ANNUAL GENERAL MEETING OF LBI EHF. 2017

Meeting invitation

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.

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05.04.2017

Central Bank of Iceland - Purchase of offshore krónur

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 day on Friday 28 April 2017, with settlement occurring as soon as reasonably practicable.

The announcement from the Central Bank of Iceland can be found here.

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31.03.2017

Unscheduled payment confirmed to be €299,167,036

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“).

Pursuant to 9.1(c) of the Conditions, and in furtherance of the Unscheduled Payment Notice issued on the 23 March 2017, the Issuer hereby notifies the Bondholders that the final amount of Euro Equivalent Available Cash paid on the 5 April 2017 will be €299,167,036.

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23.03.2017

Unscheduled payment estimated to be €301,992,221

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 9.2(a)(ii) of the Conditions, and in furtherance of the Unscheduled Payment Notice issued on the 14 March 2016, the Issuer hereby notifies the Bondholders of payment which will be applied in partial redemption of the Bonds on the Payment Date of 5 April 2017. The estimated Euro Equivalent Available Cash for this payment is €301,992,221.

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21.03.2017

Central Bank of Iceland - Agreement with owners of offshore ISK

The Central Bank of Iceland has concluded an agreement with owners of offshore króna assets subject to special restrictions pursuant to Act no. 37/2016. Under the agreement, the Bank will purchase offshore króna assets from them in the amount of equivalent of close to 90 b.kr. at an exchange rate of 137.5 kr. per euro.

Offshore króna holders that have not made an agreement with the Bank will be invited to do so in the next few days. This would apply for legal entities that hold ISK that were paid into escrow accounts in relation to ISK allocation from LBI in December 2011 against Art. 112 priority claims.

The announcement from the Central Bank of Iceland can be found here

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20.03.2017

LBI loses a case against RZB in the UK courts

Ruling against LBI ehf. was passed down today in the UK Royal Courts of Justice in a case between LBI ehf as claimant and RZB (Raiffeisen Zentralbank Österreich AG and Raiffeisen Bank International AG) as the Defendants. The dispute concerned the closeout of GMSLA and GMRA contracts as to both whether default notices were adequately served and then subsequently the appropriate valuation of underlying securities. The conclusion of the ruling is that LBI ehf does not have a claim against RZB. RZB had previously irrevocably withdrawn its claim lodged against LBI in Iceland.

The judgement will reduce previously reported expected recoveries under other assets and will also result in expenses for LBI due to costs awarded to the defendants. LBI will review whether to appeal the judgement.

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14.03.2017

Unscheduled payment estimated to be €297 million

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 April 2017 in an amount currently estimated to be €297 million.

The principal source of cash for this payment is the partial prepayment of Landsbankinn Bonds, which was received by LBI on 14 March 2017.

In accordance with the terms and conditions of the Convertible Notes, further detail will be provided on 23 March 2017.

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14.03.2017

Prepayment of USD 284.1 million from Landsbankinn

On 14 March 2017, Landsbankinn fully prepaid the outstanding balance under Bond Series 2020 in the amount of USD 170 million and partially prepaid Bond Series 2024 in the amount of USD 111 million.  The prepayment totals USD 284.1 million, including accrued and unpaid interest (EUR 266.9 million at the exchange rate of 14 March 2017).  LBI expects to announce an unscheduled payment in partial redemption of the Convertible Notes shortly.

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10.03.2017

Joint Statement by PricewaterhouseCoopers (PwC) and LBI ehf. (formerly Landsbanki Íslands hf.)

LBI ehf. (formerly Landsbanki Íslands hf.) and PricewaterhouseCoopers (PwC) hereby make known that an agreement has been reached with the effect that LBI´s ehf. case against PWC, no. E-3162/2012, which has been in process before the Reykjavík District Court, has been cancelled.

In the assessment of LBI ehf. and PwC the conclusion resulting from this settlement is acceptable under the circumstances. It will avoid unforeseeable expenditures arising from continuing litigation for an unpredictable period, enabling the parties now to concentrate better on their day-to-day activities.

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26.01.2017

ISK on escrow accounts belonging to individuals pursuant to the Partial Payments in December 2011

As provided for in Act No. 37/2016 on the treatment of króna-denomiated assets subject to special restrictions, which came into effect in May 2016, ISK balances that had been on escrow accounts since the partial payments to priority creditors of LBI ehf. (LBI) were made in 2011 were transferred to an account subject to special restrictions in August 2016.

LBI now intends to convert ISK balances on these accounts to EUR and subsequently pay out to individuals.

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