The Winding-up Board (the “WuB”) has agreed with the Informal Creditors’ Committee (the “ICC”) to establish a committee (the “Board Selection Committee”) to assist the WuB in searching for and selecting the most competent and qualified candidates for the board of directors of Glitnir post-composition.
At present, Glitnir is in winding-up proceedings whereby the management of its assets and daily operations is overseen by the WuB. However, under Icelandic law, winding-up is only an interim process which must conclude either with Glitnir entering into a composition agreement with its creditors or bankruptcy proceedings.
Composition is a process by which Glitnir agrees a compromise of its debts owed to unsecured creditors, thereby allowing it to emerge post-composition as a solvent entity. If Glitnir were to enter into composition after exiting winding-up, the new board of directors of Glitnir would take over the management of Glitnir, thereby playing a key role in the preservation and return of value to the creditors.
The WuB is continuing to assess a number of issues relating to the launch and implementation of a composition but has agreed with the ICC that, given any board will need to have been identified before launch, and the likely timing for any search and selection process, it is appropriate for that process to start now.
The role of the Board Selection Committee in the management selection process would be to:
• first, outline a strategic direction and appropriate management structure for Glitnir; and
• secondly, once a management framework for Glitnir has been established, identify and select, with the assistance of a search firm, candidates for the board of directors with the relevant expertise and experience equipped to maximise future value creation opportunities.
The ICC has nominated individuals to act as members of the Board Selection Committee in consultation with the WuB. These nominees have been selected so that the Board Selection Committee broadly represents the creditor body as a whole.
The Board Selection Committee will be co-ordinated by Skillcapital and comprised of:
• Páll Eiríksson, the WuB
• Barry Russell, Bingham McCutchen LLP
• Dr. Roman Hager, VERTO Invest GmbH
• Haukur C. Benediktsson, Central Bank of Iceland
• Jeremy Lowe, Davidson Kempner European Partners LLP
• Thibault Gournay, Anchorage Capital Europe LLP
Any objections which creditors not represented on the ICC wish to make in respect of the above nominations to the Board Selection Committee should be put in writing and sent to the Winding-up Board of Glitnir hf., Sóltún 26, Reykjavík, Iceland. Objections should, in each instance, clearly specify the reasons for such objections and must be received before 5 pm GMT on 28 May 2012.
If no objections are raised or if any objections raised are settled by 5 pm GMT on 28 May 2012, the appointments of the above nominees will take effect as at that date.
For the Winding-up Board of Glitnir hf.
Páll Eiríksson, District Court attorney