News and Notifications - Tuesday, October 07, 2008 10:43 AM
Landsbanki's Operations Continued Under Unchanged Management
Landsbanki Íslands announces that the Icelandic Financial Services Authority, the Fjármálaeftirlitiđ (FME) has decided to take over the powers invested in Landsbanki's shareholders meeting and Landsbanki's Board of Directors. The FME has appointed a receivership committee which has assumed the role of the Board of Directors with immediate effect.
Members of the receivership committee are Ársćll Hafsteinsson, Einar Jónsson, Lárentsínus Kristjánsson, Lárus Finnbogason and Sigurjón Geirsson.
The receivership committee have stated the following:
- The objective of the committee is to ensure the continued operations of the commercial banking operations of Landsbanki Íslands hf. in Iceland.
- A public notice to debtors will not be issued.
- Provisions of Icelandic insolvency laws do not apply to the operations of Landsbanki while the receivership committee is responsible for the matters of the bank. Ceasure of assets can not be made against Landsbanki during the same period.
By law, the action of appointing a receivership committee, can not have the effect of creating a default under any loan documents.
The receivership committee have asked Halldór J. Kristjánsson and Sigurjón Ţ. Árnason to continue their work as CEOs of Landsbanki Íslands hf. and be responsible for daily operations.
Landsbanki would like to stress that the bank has not been put into liquidation but is in receivership which gives it a temporary protection from payment of debts and obligations as they fall due. Work has already begun on the restructuring of the operations of Landsbanki. The receivership committee and Landsbanki's CEOs share the view that operations over the next days will be performed in a manner as close to business as usual with a view to protecting Landsbanki's assets in Iceland and abroad.
See release from the Icelandic Financial Regulator (FME)
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