The Winding-up Board of Landsbanki Íslands hf. held a creditors' meeting today, 31 May 2012.

LBI's financial situation

The Winding-up Board of Landsbanki Íslands hf. presented updated information to creditors on the estimated value of the bank's asset portfolio, based on its situation as of 31 March 2012. The bank has achieved considerable success in boosting recoveries, resulting in a real increase in the estimated value of assets over the previous quarter of almost ISK 77 billion. The total increase, taking into consideration ISK exchange rate movements against major currencies, amounted to ISK 117 billion. By far the greatest share of this increase is due to the sale of the bank's stake in the UK retail chain Iceland Foods.

Based on fixed exchange rates as of 22 April 2009, the estimated value of the bank's assets is ISK 122 billion more than the book value of priority claims, which amount to ISK 1,323 billion.

Partial payments to creditors

The Winding-up Board made partial payments to priority creditors in the winding-up proceedings for the second time at the end of this month. In this instance, total payments were equivalent to over ISK 162 billion. The bank's first partial payment were made to priority creditors on 2 December last year, and amounted to ISK 432 billion. The Winding-up Board has therefore paid over ISK 594 billion on aggregate, or around 43% of claims of priority creditors.