Announcement from LBI
On May 26, the Winding-up Board of LBI submitted an exemption request to the Central Bank of Iceland (CBI) in order to make payments to claims under Art. 109 -112 of the Bankruptcy Act (BA) for an amount equivalent to ISK 123.5bn. This amount reflects the total foreign currency cash balance held by LBI as of May 26.
On May 20, an agreement was finalized before the Scottish court between the Winding-up Board of LBI and the Administrators of Heritable Bank on the settlement of the claims and counterclaims between the two parties. As a result, the administrators of Heritable Bank accepted from LBI a senior claim of GBP 70mn and a deferred claim of GBP 7mn, and made a payment of a catch up dividend of ca. GBP 65.8mn towards LBI’s senior claim. Expected recovery for Q1 on Heritable Bank reflects the dividend payment amount received in Q2.
In Q2, LBI reached final settlement with two counterparties of exposures reported under Loans to Financial Institutions regarding ISDA derivative contracts and a correspondent bank account (Project Global Exposure). Payment of ca. EUR 54.2mn was received under one of the settlements in Q2.