The Winding-up Board (the “Winding-up Board”) of Glitnir hf. (“Glitnir”) announced on 20 September 2012 that, as part of its planning for a potential composition proposal, it had identified Jan Kvarnström as the prospective chairman of the post-composition board of directors of Glitnir, and had entered into a consultancy agreement with him to cover the period prior to the composition becoming effective.
At that time, it had been anticipated that Glitnir would shortly be able to propose a composition to its creditors for their approval. In that respect an application (the “Application”)was made on 28 November 2012 to the Central Bank of Iceland (the “CBI”) for an exemption from the Foreign Exchange Act. No. 87/1992 in order to proceed with the proposed composition which was detailed in the Application. However, and as the Winding-up Board recently announced, the first response to the Application was only received from the CBI on 23 September 2013. Although the Winding-up Board is seeking to arrange a meeting as soon as possible with the CBI to discuss the Application, it is not currently clear when it will be possible to proceed with a composition.