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.     

Landsbankinn hf. has today issued €300 million of senior unsecured bonds, equivalent to around ISK 43 billion.  The bonds have a 3 year maturity with a fixed 3.00% coupon and were priced at terms equivalent to 295 basis point spread above mid-swaps in euros. 

At the creditors‘ meeting on 2 October and in other presentations it has been stated that the intention was to hold a meeting to vote on the intended composition proposal on 5 November. It is now clear that this meeting cannot take place at such time. It is currently expected that the meeting will be held on 17 November 2015. The timing of sending of composition documents to creditors will change accordingly.

The Winding-up Board of LBI hf. held a Creditors' Meeting today, 2 October 2015.

Reference is made to (i) the Senior Indenture, dated as of July 21, 2006, (the “Indenture”), between Landsbanki Íslands hf. (now known as LBI hf.), as issuer, (“LBI”) and Deutsche Bank Trust Company Americas (“DBTCA”), as trustee, as supplemented, pursuant to which the 6.10% Senior Notes, due 2011, the Floating Rate Senior Notes, due 2009, and the €950,000 Autocallable Linked Notes due 2010, Linked to Telefónica S.A. and Banco Santander Central Hispano S.A. (collectively, the “Notes”) were issued.

On Friday 2 October 2015, at 9:00 am, a meeting will be held with creditors in the winding-up proceedings of LBI hf. (formerly Landsbanki Íslands hf.), Reg. No. 540291-2259, at Hotel Hilton Reykjavík Nordica, Suðurlandsbraut 2 in Reykjavík.

LBI and LB have today reached an agreement regarding prepayment of LB Bonds and funding of priority claims. More detailed information are to be found on LBI´s closed creditors website.

Today LBI hf. published on its closed creditors’ web site, a detailed financial presentation for Q2 2015 and a presentation containing further information about LBI´s Composition process and Key Considerations in that respect.

The Winding-up Board of LBI hf. intends to hold a creditors' meeting on 2 October 2015. In addition to the customary agenda for creditors' meetings, the Winding-up Board will present to the meeting its proposal with regards to a stability contribution, and its intention to make a formal decision with respect to that.

On 8 June 2015, the Winding-up Board of LBI brought to the attention of LBI´s creditors an announcement by the Ministry of Finance concerning a bill on a stability levy that was expected to be introduced in Parliament and a proposal from certain creditors holding significant claims on the estate of LBI for a voluntary stability contribution designed to neutralize the balance of payments risks posed by LBI’s domestic assets.

The Winding-up Board of LBI draws to the attention of creditors of LBI, an announcement which has been publised on the closed creditors section of the website, regarding the composition plan for LBI and the expected process ahead.