On July 22, 2010, the Luxembourg District Court approved an agreement between the Luxembourg Central Bank, Landsbanki Islands and the Liquidator of Landsbanki Luxembourg, pursuant to which the Luxembourg Central Bank and Landsbanki Islands have, subject to certain conditions, consented to a restructuring of their claims against the estate of Landsbanki Luxembourg, which grants seniority to the claims of the other creditors of Lansdbanki Luxembourg.
An agreement has also been concluded with Reviva Capital S.A., pursuant to which Reviva Capital will service the loans granted by Landsbanki Luxembourg other than the equity release loans.
Because of this agreement and concessions made by other institutional creditors, the Liquidator should be in a position to pay out a substantial liquidation dividend to the creditors late this year or early next year.
List of Claims
By Court order dated June 21, 2010, the District Court of and in Luxembourg, fifteenth section, sitting in commercial matters, has modified the winding-up orders on the Limited Liability Company LANDSBANKI LUXEMBOURG S.A. with registered office at 2-4 rue Beck , L-1222 Luxembourg, with respect to the modus of liquidation as follows:
The periodic listing of admissible claims will be available for inspection at the Clerk's office of the District Court from the 15th to the 25th of each month. Creditors fulfilling the conditions as described in the Court order dated December 12, 2008, are entitled to consult the above mentioned list.
Read the original extract (in French) .
Last date for receipt of claims
By Court order dated 24 February, 2010, the Luxembourg District Court of and in Luxembourg, fifteenth section, sitting in commercial matters, has modified the winding-up orders on the Limited Liability Company LANDSBANKI LUXEMBOURG S.A. with registered office at 2-4 rue Beck , L-1222 Luxembourg, with respect to the modus of liquidation as follows:
The last date by which preferred and non preferred creditors must file their claims in order to receive dividends from Landsbanki Luxembourg S.A. in liquidation has been formally set at 14 MAY, 2010 subject to the condition to publish at least 45 days before this date in the national and international newspapers as determined by the court order a notice to all creditors of Landsbanki Luxembourg SA in liquidation existing at the opening of the liquidation who have not yet filed a claim, to have their claims filed, otherwise they will not participate in the proceeds of the liquidation and will be excluded from all rights in the liquidation.
The applicability of the paragraph of the article 508 of the Commercial Code "but they can file their claims until the last distribution of dividends" has been cancelled.
Read the full extract from the Court Order (English version).
Read the original extract (in French).
Statements as at December 11, 2008 have been sent to all customers. If you have not received your account statements as at this date, please contact Customer Relations as soon as possible.
If you have changed your address, then please inform the Customer Relations team so that your details can be updated. It is critical that the liquidation team can communicate with clients during the liquidation process.
According to the Court order, all accounts are to be converted to EUR at the exchange rate prevailing on December 12, 2008. For customers who give specific written instructions, or in case of loan default or overdraft, credit balances will be netted with outstanding amounts.
The liabilities of LLUX have to be converted into EUR in order to be able to calculate the exact amount in favor of the creditors and to determine any future liquidation dividend. Should there be available funds the liquidators will be able to distribute interim liquidation dividends. These payments will be made in EUR, or in ISK if specifically requested by the customer, and providing the ISK is available for this purpose.
ISK deposits will be converted to EUR at the rate of 230:1, as foreseen in the Commercial Judgement XV No 626/09.
According to Court order, all credit interests halted on December 12, 2008.
At this stage of the liquidation process it cannot be foreseen at what date a first dividend could be paid to non-preferred creditors.
The Luxembourg tax authorities as well as the Luxembourg Social Security are preferred creditors. The Banque centrale du Luxembourg (BcL) also considers itself as a preferred creditor for part of its claim. The amounts due to these preferred creditors have not yet been determined.
Customers need to make a formal claim of debt for assets held in non-fiduciary accounts by completing the claim form and submitting it to the Court handling commercial matters.
The Liquidator has started verification proceedings imposed by the Luxembourg Court. Lists of all submitted claims will be made public at Court in due time. At this stage of the liquidation process it cannot be foreseen at what date a first dividend could be paid to the non-preferred creditors.
The Liquidator has processed the majority of claims filed under the AGDL deposit protection scheme.
The Liquidator notes that some claim requests were submitted to the AGDL by companies which do not comply with the provisions of article 6 (2) of the statutes of the AGDL, as these companies do not have their registered address in one of the EU countries.
More information can be found on the AGDL website www.agdl.lu.