Glitnir HoldCo ehf. („Glitnir“) and LBI ehf. („LBI“) have signed a settlement agreement concerning a disputed guarantee granted by Glitnir to LBI in relation to a loan which LBI made to a company called Stytta ehf. The dispute concerned a claim that LBI lodged in the winding-up proceedings of Glitnir and a claim that Glitnir lodged in the Winding-up proceedings of LBI.

Pursuant to the settlement, Glitnir will accept LBI’s claim, as an unsecured claim pursuant to Article 113 of the Bankruptcy Act No. 21/1991, for the total amount of 13.5 bn ISK.

Glitnir will also withdraw the claim lodged by Glitnir in the Winding-up procedure of LBI, which was lodged as a proprietary claim pursuant to Article 109 of the Bankruptcy Act No. 21/1991.

Further information concerning payment to noteholders due to this settlement will be provided by either party in due course.