Glitnir lodges request for exemptions from Capital Controls and signs Heads of Agreement with Islandsbanki
Glitnir has today lodged with the Central Bank of Iceland ("CBI") its request for the necessary exemptions from the Act on Foreign Exchange (No. 87/1992) to enable Glitnir to implement the proposals made by certain of Glitnir's creditors ("Creditor Proposals") which were announced by the Ministry of Finance and Economic Affairs on 8 June 2015 and to proceed with a composition on the basis of the Creditor Proposals (the "Composition"). Glitnir is now seeking to engage with the CBI to progress this request and will update creditors in due course.
Glitnir has also entered into heads of agreement with Islandsbanki hf. ("Heads of Agreement") under which the parties have agreed to co-operate in order to facilitate the Composition. Glitnir and Islandsbanki have agreed to work together to agree the necessary documentation and secure the necessary approvals to give effect to the Heads of Agreement.
Islandsbanki's announcement of the Heads of Agreement, which includes a summary of the principal terms can be found at the following link:
Islandsbanki announcement (English)
Islandsbanki announcement (Icelandic)
The announcement of the terms of the Creditor Proposals made by the Ministry of Finance and Economic Affairs on 8 June 2015 can be found at the following link:
Ministry of Finance and Economic Affairs announcement (English)
Ministry of Finance and Economic Affairs announcement (Icelandic)