Moratorium of Landsbanki Íslands hf. recognised in the US
The Bankruptcy Court, Southern District of New York, has recognised the moratorium granted to Landsbanki Íslands hf. on 5 December 2008 by the Reykjavík District Court, Iceland. The recognition is granted under Chapter 15 of the US bankruptcy code.
This recognition affords the bank similar legal protection in the US as a moratorium does in Iceland and the EEA, cf. EU Directive 2001/24/EC on the reorganisation and winding up of credit institutions, while efforts are underway to maximise the value of its assets and ensure equal treatment of creditors.