Agreements with Creditors Signed
Íslandsbanki, Glitnir's Resolution Committee, on behalf of its creditors, and the Icelandic state have signed agreements on thesettlement of the asset transfer between the old and new banks and on the recapitalisation of Íslandsbanki.
The agreements are based on the framework agreement announced on 20 July this year. This agreement provides Glitnir's Resolution Committee the opportunity to acquire, 95% of the share capital of Íslandsbanki by 30 September this year, or to receive payment in the form of a debt instrument issued by Íslandsbanki as well as an option to buy as much as 90% of the bank's share capital during the period from 2011 to 2015.
The current members of the Board of Directors will remain on the Board. The board members are: Vilhjalmur H. Vilhjalmsson, Chairman, Gudmundur R. Jónsson, Katrín Ólafssdóttir, Martha Eiríksdóttir and Ólafur Ísleifsson.
Birna Einarsdóttir, CEO of Íslandsbanki:
"I am very pleased that the agreements have been finalised as it an important milestone in the restoration of the Icelandic financial system. What needs to be resolved now is whether Glitnir's creditors will acquire the bank immediately or to receive a payment in the form of a debt instrument issued as well as an option to buy 90% of the bank's share capital. Both results create a solid and motivating future for the bank. Íslandsbanki will continue to emphasise working with Icelandic businesses and households to ensure that economic recovery in Iceland can proceed as effectively as possible. That serves the interests of all stakeholders."