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Icelandic bank creditors set for windfall 18 January 2012

British priority creditors of failed Icelandic bank Glitnir are set to have proposals heard for a cash payment at a meeting later this month.

The winding up board of Glitnir today announced it will consider a proposal to make a payment to priority creditors on 31 January 2012.

News of a possible cash payment to creditors has surfaced after it was confirm the proposal had been added to the agenda of a creditors meeting already scheduled to take place in Reykjavik at the end of the month.

A letter to eligible creditors is set to be mailed out later this week with further information about the proposed distribution.

Should no objections be raised to the proposed distribution at the January meeting, the priority creditors can expect payment by 29 February 2012.

The payments will constitute final payment to the creditors concerned, whether payment is made to the creditor in question directly or to escrow accounts.

According to the second paragraph of Art. 128 of the Icelandic Act on Bankruptcy, a creditor loses the right to present objections to the proposed distribution if the creditor does not submit such objections at the latest by the close of the above-mentioned meeting.

Should no objections be made to this proposal by that time, the proposed distribution will be considered to be finally approved.

All creditors holding claims against Glitnir hf. are entitled to attend the meeting. Further information is available on Glitnir’s website



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