The Composition Agreement of LBI hf., which was confirmed by the District Court of Reykjavik on 18 December 2015, has become final and binding under Icelandic law as the appeal period provided for under Article 59 of the Act on Bankruptcy etc. No. 21/1991 lapsed on 25 December without any appeal being filed.
The Composition Proposal of LBI hf., which was approved at the Composition Voting Meeting on 23 November 2015, has as of today 18 December 2015 been confirmed by the District Court of Reykjavik as the Composition Agreement of LBI hf.
On Tuesday, 15 December 2015, at 10:00 a.m., a hearing will be held in the District Court of Reykjavik, Courtroom No. 301, at Laekjartorg Square, Reykjavik, Iceland, to address the Request of the Winding-up Board of LBI hf. for confirmation the composition proposal of LBI hf., (formerly Landsbanki Íslands hf.), Reg. No. 540291-2259.
A creditors' meeting of LBI hf. was held today at Hilton Hótel Nordica in Reykjavík to vote on the company's composition proposal.
On 11 November 2015 the Winding-up Board received a letter from the Central Bank of Iceland, in response to LBI´s exemption request based on the Composition Proposal, giving its provisional approval to that request and the intended Stability Contribution.
In accordance with the agreement of 18 September 2015, Landsbankinn hf. has purchased of LBI its Landsvirkjun Bond and the purchase price has been paid.
Last Wednesday, 4 November, the Icelandic Parliament passed law amending the Act on Income Tax, the Act on Special Levy on Financial Undertakings, the Act on Financial Undertakings and Act on Stability Levy (composition of the estates of failed financial undertakings).
In preparation for the anticipated meeting to vote on the intended composition proposal, the Winding-up Board of LBI hf. (the “WuB”) strongly encourages creditors to submit all outstanding claim transfer requests to Epiq Systems, as soon as possible.
“Consultation between Central Bank and Minister of Finance and Economic Affairs on exemptions for the three failed banks' estates
Last Monday LB issued bonds under its Euro Medium Term Note (EMTN) program of total EUR 300m. In accordance with LBI‘s and LB‘s agreement from 18 September 2015 LB will use the proceeds from this Bond issuance to prepay (i) LB Bond tranches B1, B2 and B3 with maturity 9 October 2016 and (ii) 45% of LB Bond tranches C1, C2 and C3 with maturity 9 October 2018. LB‘s prepayment is expected to happen within the next 3-4 days.