Landsbanki files for administration of BG Holding ehf
London - Landsbanki yesterday filed a petition to place BG Holding ehf into administration under English law, nominating Tony Lomas and Zelf Hussain of PricewaterhouseCoopers LLP to act as joint administrators of BG Holding ehf.
The underlying assets of BG Holding ehf comprise a variety of shareholdings in Iceland Foods Group Limited, Highland Group Holdings Limited (House of Fraser), Corporal Limited (Hamleys of London) and Aurum Group. These companies are unaffected by the petition and continue under the control of their respective management teams.
The move reflects Landsbanki's belief in the strength of the companies and in their experienced management teams.
The decision was taken by Landsbanki's Resolution Committee, which commented:
"Our discussions with the Baugur Group did not produce any acceptable proposals, so we have taken steps to protect these valuable assets. We intend to work with management of the companies to maximise the long-term value for all stakeholders. This move is designed to preserve the stability and protect the value of the companies concerned."