Under the terms of the Moratorium on creditor proceedings granted to Glitnir hf. ("Glitnir") on 24 November 2008 by the District Court of Reykjavik, the Moratorium Appointee of Glitnir presented the assets and liabilities of Glitnir, together with an estimate of the value of the assets and a computation of the liabilities as at 31 December 2008.
Agreement has been reached on Íslandsbanki's capital structure. Under the agreement, Glitnir banki hf. has the right to subscribe for a majority shareholding in Íslandsbanki. This is the outcome of negotiations between the government and representatives of Glitnir's creditors. This implies that Íslandsbanki might soon be fully owned by foreign parties. According to the agreement the Icelandic government will provide the Bank with new equity to begin with which the creditors will have an option to acquire before 30 September given certain conditions. Government will as well support the capital of Islandsbanki with a subordinated loan to strengthen the bank's capital ratio and liquidity.
Capitalisation and Compensation Agreement between the Government and the Resolution Committee of Glitnir
The Government of Iceland and the Resolution Committee of Glitnir are pleased to announce that an agreement has been reached in respect of the initial capitalisation of Islandsbanki and the basis for the compensation payable to the creditors of Glitnir following the creation of Islandsbanki in October 2008. This will put Islandsbanki on a secure financial footing for its future development.
Capitalisation of the Three Principle Icelandic Commercial Banks and Basis of Agreement with Creditors
The Government of Iceland is pleased to announce that it has determined the basis for the capitalisation of the three new banks (Islandsbanki, New Kaupthing and New Landsbanki) created following the collapse of the main Icelandic commercial banks in October 2008. It has also reached heads of agreement with the Resolution Committees of the old banks in relation to how compensation for the transfer of net assets into the new banks will be achieved. In respect of two of the new banks, Islandsbanki and New Kaupthing, this includes a conditional agreement for the old banks to subscribe for majority equity interests in the new banks.
The interests of Sjova's customers are safeguarded through a joint effort by Glitnir, Islandsbanki, the government and the Financial Supervisory Authority (FME).
Sjóvá's financial restructuring is now complete. A new company with the name Sjóvá will be established to take over only the insurance activities of the former company. This means that investment activities involving real estate have been separated from Sjóvá's traditional insurance activities.
Kristján Davíðsson the CEO of Glitnir hf. has requested to leave Glitnir hf. due to assignments outside of Iceland. The Resolution Committee has agreed and wishes him all the best in the future. Kristjan will assist the RC in the coming months on certain assignments. Ingolfur Hauksson, our CFO, will take the CEO post until further decided.
Glitnir banki hf., Reg. No. 550500-3530, legally domiciled at Kirkjusandur 2, 105 Reykjavík, Iceland, but currently located at Sóltún 26, 105 Reykjavík has been granted a moratorium pursuant to a ruling of the Reykjavik District Court until 13 November 2009. On 12 May 2009, the Reykjavík District Court appointed a Winding-Up Board for the bank, which will handle, for instance, claims against the bank while the moratorium is in effect and after winding-up proceedings commence upon the conclusion of the moratorium.
Over the past few months, Glitnir's Resolution Committee, the Sjóvá Board of Directors, and Íslandsbanki's Corporate Finance have been working on the restructuring of Sjóvá. The work is expected to be completed in the next few days. The goal of the restructuring is to ensure the best interests of Sjóvá's customers, and to maximise the company value.