• haed mjo
  • hver mjo
  • landmannalaugar mjo
  • leirhver mjo
  • nordurljos mjo
  • reykjavik mjo

Articles

Print

This is the official homepage of Glitnir hf. where information will be revealed during the Moratorium period and Winding up proceedings.

During the global liquidity crisis, the three main commercial banks of Iceland, Glitnir, Landsbanki and Kaupthing, were not able to refinance themselves in the beginning of October 2008, despite having considerable assets to match their debts and having operated in full compliance with European banking laws.

 

Consequently, Glitnir, Landsbanki and Kaupthing were taken into administration by the government of Iceland. Due to unusual financial market circumstances the Icelandic Financial Supervisory Authority appointed resolution committees for the banks in accordance with article 5 of Legislative Act No. 125/2008 on the Authority for Treasury Disbursements.

Since 7 October 2008 the Resolution Committee of Glitnir has taken on the affairs of the bank, including supervising, handling of all the banks' assets, and conducting the banks' business operations.

A Winding Up Board for Glitnir hf. was appointed by the Reykjavík District Court on May 12 2009. At that time the Resolution Committee and Winding-Up Board jointly managed Glitnir’s affairs in accordance with the division of responsibilities provided for in Points 3 and 4 of Temporary Provision V in the Act on Financial Undertakings until the end of December 2011.

One of the main tasks of the Winding-Up Board is to make decisions on claims in accordance with the procedure provided for in Act 44/2009, amending Act No. 161/2002, on Financial Undertakings and in Act no. 21/1991 on Bankruptcy etc. (hereafter the BA).

When the time limit for lodging claims expired, the Winding-Up Board compiled a list of lodged claims and began to make independent decisions on recognising these claims, including the priority claimed for them. The decisions on priority of claims must comply with the provisions of Articles 109-114 of the BA, with the exception resulting from amendments to the law, that claims for deposits, cf. the provisions of the Act on Deposit Guarantees no. 98/1999 and an Investor Compensation Scheme, have priority as provided for in Article 112 of the BA.

In addition to the meeting on 29 November 2012, twelve open creditors’ meetings have been held. Three were held concerning Glitnir’s moratorium, one to discuss the settlement between Glitnir and Íslandsbanki hf. for the transfer of assets and liabilities which was effected by a decision of the FME of 14 October 2008, and eight to discuss Glitnir’s List of Claims.

Glitnir held its first creditors’ meeting on 17 December 2009, in order to present the first List of Claims received by the Winding-Up Board prior to the deadline for lodging claims. A report prepared by Glitnir’s Winding-Up Board and Resolution Committee was also presented with the objective of providing creditors with information on the main issues concerning Glitnir, and to give an account of the claims recognition process and explanations of decisions made on claims. In addition, the report explained the composition, activities and tasks of the Resolution Committee, the Winding-Up Board and its activities, information on financial issues and other details. The afore-mentioned creditors’ meeting was adjourned, first to 19 May 2010, and subsequently to 2 December 2010, 14 April 2011 and 31 August 2011, at which date decisions had been made on all claims.

On 10 June 2011 the Icelandic Parliament passed an amendment to Act No. 161/ 2002 on Financial Undertakings. As of 1 January 2012, Glitnir’s Winding-Up Board formally assumed all tasks of Glitnir’s Resolution Committee, whose work is now concluded. The principle tasks of the Resolution Committee in accordance with the decision by FME of 7 October 2008 were to act as the board of the company and as such supervise the operations to safeguard and maximise the assets for the benefit of the creditors Following the adoption of the amendments referred to above, work was initiated to assign tasks from the Resolution Committee to the Winding-Up Board in order to implement the necessary organisational changes and have a smooth transition at the end of 2011. The transition is now fully implemented without any disruption to the activities of Glitnir.

 

 

On the Agenda

Creditors meeting – 20 November 2014