Yesterday, September 16th 2010, the Supreme Court ruled in the case concerning which interest rates to use to settle an FX linked car loan. The verdict confirmed the verdict of the District Court, that the lowest Central Bank rates at each interest date should be used to calculate the outstanding balance. This is a result that was expected by the RC and corresponds with the work currently being done to settle the Íslandsbanki car loans.
The Resolution Committee and Winding-Up Board of Glitnir hf. are pleased to present the Statement of Assets and Liabilities, incorporating an estimate of the value of Glitnir's assets as at 30 June 2010 and a computation of liabilities.
Yesterday in New York, Glitnir responded to the motions to dismiss the New York Complaint that Defendant Jón Ásgeir Jóhannesson and his co-defendants filed in July. Glitnir reaffirmed in its response its strong commitment to pursuing the New York Complaint as part of its worldwide effort to recover assets for the Bank’s creditors. Íslenska.
Glitnir in Luxembourg establishes subsidiary to administer the bank’s asset portfolioGlitnir in Luxembourg has established the subsidiary Reviva Capital to handle the administration and management of the bank’s asset portfolio. Reviva Capital has received an operating license from the authorities and the financial regulator in Luxembourg to handle collection and asset administration activities, and intends furthermore to offer other parties its services. Reviva Capital has eighteen employees. Management and key employees of Glitnir in Luxembourg own a 10% stake in the company, with the remainder held by Glitnir in Luxembourg. The employees’ holding is conditional and linked to the company’s long-term objectives. Á íslensku
The Winding-up Board of Glitnir has today obtained further worldwide Freezing Orders in connection with Glitnir’s claim against Jón Ásgeir Jóhannesson. The Freezing Orders are in respect of transfers of sums totalling £585,648 made out of Jóhannesson’s bank account after the worldwide Freezing Order obtained against him on 11 May.
The new Orders have been made against Bohemian Partners LLP, Tina Maree Kilmister, Aspiring Capital Partners LLP and Jeffrey Ross Blue, and attach only to the money received from Jóhannesson. There are no other claims made against the four new respondents, the rest of their assets are not frozen and there are no allegations of wrongdoing against them. Á íslensku
On 23 July 2010, the District Court of Reykjavik made a ruling regarding foreign currency indexed loans, which had been deemed illegal by the Supreme Court last month. The ruling was that the original interest (LIBOR +) should not apply, rather Icelandic interest (non-indexed) issued by the Central Bank of Iceland from the first day of the loan agreement.
The Resolution Committee believes the issue is now moving in the right direction, but the matter has been appealed to the Supreme Court. The Resolution Committee expects a ruling in September this year.
It is the Resolution Committee’s view that, should the Supreme Court not over rule the District Court’s decision, there will be minimal impact on Glitnir and its investment in Islandsbanki.
The Winding-Up Board of Glitnir has prepared two memos which may provide useful information to creditors of the Bank. The first is in relation to the legal framework and processes in respect of making interim distributions to creditors. The second is in relation to the legal framework for a Composition under Icelandic law. Both memos are attached below.
Glitnir composition memo
Glitnir distribution memo
On 9 July 2010 in the Royal Courts of Justice in London, Jón Ásgeir Jóhannesson (JAJ) applied to have the worldwide freezing order, originally granted on 11th May 2010, overturned. GLB argued that the order should remain in force as they believed that the responses by JAJ to the original order were incomplete and did not present a complete view of the worldwide assets he controlled.
A ruling by the Reykjavík District Court, pronounced on 19 November 2009, authorised the extension of the moratorium granted to Glitnir hf., Reg. No. 550500-3530, Kirkjusandur, 105 Reykjavík, which was originally granted on 24 November 2008, to 11:00 am on Friday, 13 August 2010.