LANDSBANKI ISLANDS – NATIONAL BANK OF ICELAND LTD
Previous company name
Name change date
Landsbanki Islands, also known as National Bank of Iceland Ltd., is engaged in the provision of corporate, retail, and investment banking products and services. The bank was established by an act of parliament in 1885. It is headquartered in Reykjavik, Iceland.
Landsbanki offers financial services, including offshore savings, residential development financing, asset management, brokerage, stock broking, and private and investment banking. The bank is also a provider of personal banking products and services, such as international banking, Internet banking, Western Union services, and investment banking services. In addition, Landsbanki offers proprietary trading, securities and treasury, asset management, and asset custody. Landsbanki is a leading financial institution in Iceland.
Landsbanki has 40 branches and sub-branches throughout Iceland. The bank is also active in the United Kingdom, the Netherlands, Canada, Finland and Norway. In addition, the bank operates representative offices in Canada and Hong Kong.
Description and history
The Bank provides general and specialized financial services to individuals, corporated entities and institutions.
The Bank was the first Icelandic bank to commence operations, opening on 1 July 1886, at the residence of Sigur’ur Kristjansson, a Reykjavik bookseller, on Bakarastigur which is now Bankastr’ti (Bank Street). The Bank was a public institution, established in order to facilitate monetary transactions within the country, and to encourage industrial development. At the time there was a shortage of liquid funds in Iceland, and an increasing demand for financing to modernise and expand the country’s rather stagnant economy. To begin with, notes were issued by the country’s Treasury (Landssjo’ur), which also lent the Bank funds for its operations. This was the first currency ever issued in Iceland
Landsbanki Islands hf. suspended
Following the news and the uncertainty about Landsbanki Islands hf. situation, NASDAQ OMX Helsinki, Stockholm and Copenhagen have taken the decision not to accept Landsbanki Islands hf. as trading participant.
Landsbanki’s Operations Continued Under Unchanged Management
Landsbanki Islands hereby announces that the Icelandic Financial Services Authority, the Fjбrmбlaeftirlitid (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 Arsжll Hafsteinsson, Einar Jуnsson, Lбrentsнnus Kristjбnsson, Lбrus Finnbogason and Sigurjуn 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 Islands 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 Halldуr J. Kristjбnsson and Sigurjуn _. Arnason to continue their work as CEOs of Landsbanki Islands 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.
Acquisitions from Landsbanki cancelled
As announced on 1 October 2008, Straumur-Burdaras Investment Bank hf. (Straumur) and Landsbanki Islands hf. (Landsbanki) signed an agreement whereby Straumur acquired, subject to the approval of relevant regulatory and competition authorities, the majority of Landsbanki’s overseas corporate finance and brokerage platforms for a consideration of EUR380m. The agreement applied to 100% of Landsbanki Securities (UK) Limited and Landsbanki Kepler, as well as Landsbanki’s 84% stake in Merrion Landsbanki. On 7 October 2008, Landsbanki announced that the Icelandic Financial Services Authority (FME) had decided to take over the powers invested in Landsbanki’s shareholders meeting and Landsbanki’s Board of Directors.
Furthermore, that the FME had appointed a receivership committee which had assumed the role of Landsbanki’s Board of Directors with immediate effect. Furthermore, UK authorities announced on 8 October 2008 that they had taken steps to freeze assets of Landsbanki in the UK. It has become clear that Landsbanki will not be in a position to fulfil its obligations under the share purchase agreement. For these reasons, Straumur has notified Landsbanki that the share purchase agreement is cancelled.
To whom it may concern
The Resolution Committee of Old Landsbanki announce the appointment of the UK limited liability partnership of Deloitte & Touche LLP (‘Deloitte’) to assist with the communication and consultation with all remaining creditors of Old Landsbanki including its international branches, following the transfer of all of Old Landsbanki’s Icelandic domestic deposits together with significant Old Landsbanki assets into New Landsbanki Islands hf, as announced on 9 October 2008.
It is the Resolution Committee’s intention to provide regular update information to all creditors of Old Landsbanki through a dedicated website. Initial information is available at http://www.landsbanki.is/oldlandsbanki
Deloitte will be assisting the Resolution Committee to set up an informal committee of creditors representing a broad cross section of financial institutions, bond holders, international deposit holders, and other creditors. Subject to the creditors’ committee members entering into strict confidentiality undertakings, the Resolution Committee, with the assistance of Deloitte, intend to consult with the creditors’ committee on their plans for realising the assets of Old Landsbanki and making payments to creditors. In this regard, contact will be made with known creditors of Old Landsbanki over the next few days.
Those creditors of Old Landsbanki wishing to register their interest in this regard are invited to do so under ‘Registration for Claims’ on the website http://www.landsbanki.is/oldlandsbanki or contact Old Landsbanki through the following email address creditor.info@Landsbanki.is
Takeover by Icelandic Government
The bank acquired by Icelandic Government and delisted on Iceland Stock Exchange with effective from 17 November 2008.
Engaged in the provision of corporate, retail, and investment banking products and services
BRIDGEWELL GROUP LIMITED
US SIC Code
Austurstraeti, 11 – P.O. Box 170
City province or state postal code
Phone: 354 560 66 00
Fax: 354 552 98 82
Country address: ICELAND
Website url: www.landsbanki.is