Announcement from Landsbanki Íslands hf. - Creditors meeting

The Winding-up Board of Landsbanki Íslands hf. held a creditor‘s meeting today, 28 November 2012.

LBI's financial situation

The Winding-up Board of Landsbanki Íslands hf. (LBI) presented updated information to creditors on the estimated value of the bank's asset portfolio, based on its situation as of 30 November 2012. The bank has achieved considerable success in achieving recoveries, resulting in a real increase in the estimated value of assets over the previous quarter of almost ISK 11 billion. The total increase, taking into consideration ISK exchange rate movements against major currencies, amounted to ISK 21 billion.

The estimated value of LBI's assets has been steadily increasing since the bank's winding-up proceedings commenced. Based on the ISK exchange rate as of 22 April 2009 against those foreign currencies which comprise the bank's asset portfolio, the estimated value of the asset portfolio, including three partial payments to priority creditors, rose from ISK 1,104 bn as of 30 April 2009 to ISK 1,517 bn as of 30 September 2012, a total increase of ISK 403 bn or 36%. The estimated value of LBI’s assets is therefore about 200 bn higher than estimated priority claims.

Partial payments to creditors

The Winding-up Board made partial payments to priority creditors in the winding-up proceedings for the third time on October 5th 2012. In this instance, total payments were equivalent to around ISK 82 billion. The Winding-up Board has therefore paid over ISK 660 billion on aggregate in three partial payments, or around 50% of claims of priority creditors in accordance with Art.112 of Bankruptcy Act no. 21/1991. Further information on the partial payments and the bank´s operations are available on the bank´s website.

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