Landsbanki exercises rights over selected securities held by BG Holding ehf
London - Following the petition by Landsbanki Islands hf. to place BG Holding ehf. into administration under English law, Landsbanki Islands hf. has exercised its rights over selected securities that BG Holding ehf. holds and has nominated receivers from PricewaterhouseCoopers LLP to hold the shares on their behalf.
The securities on which a fixed charge* has been applied are BG Holding ehf's shareholdings in the following companies:
- Iceland Foods Group Ltd (13.73%)
- Highland Group Holdings Limited, which owns the House of Fraser (34.90%)
- Aurum Group (37.75%)
- Corporal Ltd, which owns Hamleys (63.7%).
Landsbanki asserts that:
- Not a single UK company has been put into administration as a result of this action. BG Holding ehf. is an Icelandic company and the petition to put BG Holding ehf. into administration does not effect the status or performance of the operating companies.
- The decision to apply for BG Holding ehf. to be put into administration under English law was made in order to ensure an orderly and secure transition of the shareholdings and to protect the long term value of the shares owned by BG Holding ehf, a subsidiary of Baugur Group hf.
- The majority of the investments of BG Holding ehf are in UK companies that own prominent UK brands. Landsbanki Islands hf. believes that its goal of ensuring maximum long-term value of its assets is best achieved by these actions.
- Landsbanki Islands hf. reiterates its faith in the strong management teams of Iceland Foods, House of Fraser, Aurum and Hamleys.
- Landsbanki Islands hf. emphasises that this approach is believed to cause the least disruption to the management teams of the operating companies in which BG Holding ehf. has invested and to create stability so the management teams of the companies can focus entirely on continuing to operate successfully.
* A fixed charge is a charge held over specific assets, whereby the debtor, in this case BG Holding ehf, cannot sell the assets without the consent of the secured creditor, in this case Landsbanki.