Heads of terms executed between the Ministry of finance and the Resolution Committee
The Resolution Committee of Landsbanki Íslands hf. is pleased to announce that agreements have been reached on the value of and payment for those assets transferred from Landsbanki to NBI hf. The agreements diminishes uncertainty and lays the foundation for more focused efforts by the Resolution Committee to maximise the value of the insolvent estate to the benefit of its creditors. The agreements mark a certain turning point, in that the recovery rate to the bank's preferential creditors is now estimated to be higher than previously anticipated. Based on the value of agreements reached, plus the valuation used by the Resolution Committee of Landsbanki Íslands hf., their recovery rate can be expected to be almost 90%. It should always be borne in mind, however, that the estimated value of assets is subject to some uncertainty, for instance, due to future economic developments both within Iceland and abroad, which could impact the eventual value of the underlying assets.
Resolution Committee Chairman Lárentsínus Kristjánsson:
"This outcome is highly acceptable for both the Resolution Committee and marks a step forward in this procedure. The conclusion of these agreements is the result of very extensive efforts and I would like to take this opportunity to thank everyone who has made a contribution here."