Glitnir hf. formally enters winding-up procedure

With a ruling of the District Court of Reykjavik published yesterday, Glitnir hf. has formally entered winding-up procedure. Icelandic law provides for automatic end of the moratorium period upon entering into winding-up procedure. The Resolution Committee and Winding-up Board jointly applied to the District Court of Reykjavik to formally recognize that Glitnir banki hf. is in a winding-up procedure to ensure the bank enjoys the same protections from litigation, collection measures and other depletion of assets as it has had during the moratorium.  Á íslensku

The Resolution Committee and Winding-up Board decided that it would be prudent to submit an application for Glitnir hf. to enter winding-up procedure before 24 November 2010 (the maximum moratorium date) in order to ensure a smooth transition from the moratorium procedure.

The ruling involves no changes to the bank’s day-to-day activities or its legal status. The Resolution Committee will during the winding-up procedure continue to manage the interests of the bank with the same aim as before to maximise the value of assets for the benefit of creditors. That includes waiting for the maturity of assets if deemed beneficial rather than disposing of them immediately. The Winding-Up Board will continue to be responsible for the claiming process.