The Resolution Committee (“RC”) and Winding-Up Board (“WuB”) of Glitnir banki hf (“Glitnir”) wish to invite creditors who have an interest in participating on the Informal Creditors Committee of Glitnir (“ICC”) to do so by Friday 29th January 2010.
The Resolution Committee (“RC”) and Winding-Up Board (“WuB”) of Glitnir banki hf (“Glitnir”) wish to invite creditors who have an interest in participating on the Informal Creditors Committee of Glitnir (“ICC”) to do so by Friday 29th January 2010.
Creditors can register their interest by contacting Will Geer of Deloitte LLP (“Deloitte”) at This e-mail address is being protected from spambots. You need JavaScript enabled to view it , providing details of their interest as set out later in this invitation. Deloitte will assist the RC in collating information provided and finalising the creditors or represented groups of creditors to be invited by the RC and WuB onto the ICC.
Participation in the ICC will be subject to participants signing a non disclosure and confidentiality agreement.
Creditors should also be aware that ICC members will be party to material non public information which is likely to impact on their ability to trade any debt they hold in Glitnir, and creditors are asked to consider this, and take advice as necessary, before putting themselves forward as potential ICC members.
Creditors are also advised that it is likely that there will be approximately 4 in person meetings per annum (in London or Reykjavik), and a number of ad-hoc conference calls as material events unfold. Creditors may also wish to be aware that Glitnir is not able to reimburse any travel or other expenses of incurred by ICC members as a result of their participation on the ICC.
The RC and WuB expect to finalise the ICC membership, and publish the creditors or represented groups of creditors participating on the ICC on this website by 15th February 2010.
Background
- In the autumn of 2008, shortly after the emergency legislation was applied to Glitnir, and the RC was appointed, the RC sought to form an ICC.
- At that time the RC considered the following guiding principles when inviting creditors or a represented group of creditors to participate on the ICC:
- The ICC should primarily include creditors or represented groups of creditors with a significant economic interest as creditors (relative to the overall liabilities of Glitnir)
- The ICC should have a balance of the different types of creditor (e.g. international bonds, syndicated and bilateral loans, and local government creditors etc.)
- The ICC should have a balance of the geographic domiciles of the creditors of Glitnir (e.g. Europe, UK, USA, Iceland, etc.)
- The ICC should constitute a manageable number of institutions, and the number of individuals attending any ICC meeting should be limited in order to ensure the consultation continues to be as effective as possible. (In this regard, the RC considers a membership of up 8 to 12 creditors or represented groups of creditors, and attendance at meetings of no more than 24 people as manageable - i.e. 2 or 3 attendees per creditor or represented group of creditors)
- Members of the ICC would need to commit to attending a significant number of in person and conference call meetings.
- The RC and WuB would wish to continue with an ICC constituted following these guiding principles.
Opportunity to refresh the membership of the ICC
- Glitnir has recently completed a claim registration process which, whilst the final determination of creditor claims by the Icelandic Court remains outstanding, has given the RC more current information on the identify of individual creditors and the magnitude of individual creditors exposure to Glitnir.
- In particular, there has been material trading of the bond positions, and the RC has more current information on the major bond holders.
- A number of creditors have represented to the RC an interest in participating on the ICC, and for there to be an opportunity for them to be considered in this regard.
- The RC would like to note the extensive and valued contribution of the current ICC members to the process to date, and express their sincere gratitude. Indeed, the RC expect a number of the current ICC members to express an interest in continuing their participation on the ICC, and look forward to working with many of them as members of a refreshed ICC.
Objectives for the ICC
- The ICC is a consultative committee of individual creditors or represented groups of creditors.
- The ICC provides to the Resolution Committee of Glitnir (“RC”) input from creditors on the strategic direction being developed and implemented by the RC on behalf of creditors (e.g. the design of any Composition to be proposed to creditors), the overall asset strategy of Glitnir, and input on major operational decisions being taken by the RC (including for example material asset sales or decisions relating to material assets of Glitnir – historically this would have included decisions being taken relating to Islandsbanki).
- The ICC has no formal powers or duties under Icelandic legislation. However, the RC recognises that it is managing the Glitnir assets and strategy for the benefit of all creditors of Glitnir, and that consulting with creditors is an important part of its decision making process.
- The RC also recognises that creditors have expressed a strong interest in having their views taken into account by the RC.
- In addition, the RC recognises the banking and subject matter expertise and experience of the individuals and institutions attending ICC meetings and values the significant contribution that those individuals and institutions make to the success of the Glitnir process.
Registration of Interest
Although the constitution of the ICC will be based upon the guiding principles set out above, the RC and WuB will be required to exercise judgement in certain areas. The RC and WuB would ask for creditors to be understanding in this regard.
There are many creditors of Glitnir, and many who have, by any measurement mechanism, significant exposure to Glitnir. All interested parties cannot be directly accommodated in an ICC if that ICC is to be manageable and effective. Therefore, creditors are encouraged to consider participating in the ICC by represented groups. For example, in the existing ICC this has been accomplished by groups of bondholders being collectively represented by a single entity or groups of banks with syndicated loans being represented by a single bank (perhaps the syndicate agent). Subject to individual creditors signing onward non disclosure and confidentiality undertakings (and considering the material non public nature of the information they may receive), creditors can receive information from a group representative and provide their input to the RC through their group ICC member.
Any creditor wishing to be represented on the ICC should contact Will Geer of Deloitte ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) setting out its exposure to Glitnir by reference to its claim submitted to Glitnir.
Any party wishing to represent a group of creditors on the ICC should contact Will Geer setting out:
a) the identity of the creditors it is intending to represent;
b) documentary evidence that it has been authorised by those creditors to represent them; and
c) evidence of the exposure to Glitnir of each creditor in the group by reference to each creditor’s claim submitted to Glitnir.