Revised Stability Proposal
The Ministry of Finance and Economic Affairs announced this morning that it has received a proposal to amend the stability contribution originally proposed by a group of Glitnir’s creditors (the “Creditor Group”) on 8 June 2015 (the “Revised Stability Proposal”). Under the Revised Stability Proposal Glitnir would transfer ownership of its entire interest in Islandsbanki to the Icelandic State and would be entitled to retain a greater proportion of its ISK cash and cash equivalents, which would be immediately exchangeable for FX.
This announcement can be found at the following link:
The Revised Stability Proposal was made following private consultations between the Task Force on the Liberalization of Capital Controls and advisers to the Creditor Group to review the original 8 June 2015 proposal. The Creditor Group represents approximately 25% of claims by value against the Glitnir estate.
The Winding-up Board has today submitted a further request to the Central Bank of Iceland for the necessary exemptions from Act No. 87/1992 on Foreign Exchange, as amended, to enable Glitnir to proceed with a composition on the basis of the Revised Stability Proposal. This request is subject (amongst other things) to the approval of the Revised Stability Proposal by a majority of the members of the Informal Creditors’ Committee in accordance with the resolution passed at the open creditors’ meeting on 8 September approving the stability contribution as original proposed.