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.

The Resolution Committee and Winding-Up Board of Glitnir hf. hereby present the Financial information for Q1 2010.  These information where presented on the open creditors meeting on 19 May 2010.

 Glitnir Q1 2010 Financial information

• Lawsuit filed in New York court
• Freezing order secured in London on Jóhannesson’s personal assets worldwide
• Press conference to be held at 14.30 today in Reykjavik

New York, May 12, 2010 – Glitnir hf. announces that it has commenced legal action in the Supreme Court of the State of New York against Jón Ásgeir Jóhannesson, formerly its principal shareholder, Lárus Welding, previously Glitnir’s Chief Executive, Thorsteinn Jonsson, its former Chairman, and other former directors, shareholders and third parties associated with Jóhannesson, for fraudulently and unlawfully draining more than $2 billion out of the Bank. Á íslensku

 A full copy of the New York court action

The Resolution Committee and Winding-Up Board of Glitnir hf. hereby present the Financial Statemens of the bank for the year 2009.

 Glitnir's financial statement 2009

The Resolution Committee and Winding-Up Board of Glitnir hf. (“Glitnir”) are pleased to present the Statement of Assets and Liabilities of Glitnir as at 31 December 2009 (the “Statement”).

 Glitnir SAL 31.12.09

The Glitnir restructuring was chosen as one of eight finalists for the IFLR Europe Restructuring Deal of the Year award. IFLR (the International Financial Law Review) is a leading European publication that focuses on the financial markets.  These annual awards recognize innovative and successful work in the capital markets and in finance. The European awards ceremony 2010 was held in London on 18 March 2010. The winner in the restructuring category was McCarthy & Stone.

The Resolution Committee and Winding-up Board of Glitnir hf. have concluded a series of meetings undertaken to present the bank’s matters.

Meetings were held with representatives of ministries, the Central Bank, FSA and various media. Representatives of Glitnir also appeared for the Trade Committee of the Icelandic parliament, Althingi.

In response to a media query in Iceland, Glitnir’s Resolution Committee and Winding-up Board provide the following summary of aggregate operating expenses for 2009.  It is important to bear in mind that the cost of managing the estate is paid by creditors, around 80% of whom are foreign parties. Creditors’ representatives monitor Glitnir’s activities closely and are informed regularly and in detail of the progress of events. In order to maximise the value of the assets of Glitnir’s estate, creditors’ representatives have placed major emphasis on obtaining the advice and assistance of the most capable experts in each area. Due to the scope of the estate and complexity of the tasks to be dealt with, it has naturally proven necessary to seek the assistance of international experts to a major extent.  Á íslensku