News announcement from LBI hf. - Creditors Meeting
The Winding-up Board of LBI hf. held a Creditors' Meeting today, 2 October 2015.
LBI hf. has already recovered almost ISK 1,335 billion of the ISK 1,663 billion estimated total recoveries, based on its position as of the end of June this year, which means that as of the same point in time recoveries in cash amount to almost 80% of total recoveries. Bonds issued by Landsbankinn hf. amount to just over ISK 200 billion or some 60% of the almost ISK 328 billion which remains to be recovered.
Partial payments totalling ISK 1,117.6 billion have been made to priority claims with reference to Art. 112 of the Act on Bankruptcy etc. equivalent to around 84.14% of the total amount of such claims.
As of the end of June this year, the estimated value of LBI's assets was around ISK 264 billion more than the outstanding balance on priority claims recognised with reference to Articles 112 of the Act on Bankruptcy etc.
The status of the composition process and the key aspects of the anticipated composition proposal were discussed at the meeting. A decision by the Winding-up Board to deliver a stability contribution as provided for in Point 4 of the second paragraph of Art. 103 of the Act on Financial Undertakings, No. 161/2002, cf. Temporary Provision III of the Act on the Central Bank of Iceland, No. 36/2001, met with no objections from creditors. The same applies to Deeds of Release and Indemnity for LBI's Winding-up Board, employees and advisors in connection with the stability contribution, the composition process and measures taken in connection with the preparation and fulfilment of a proposed composition.