Assets & financials

Kaupthing's collapse in October 2008 is one of the largest bankruptcies in the history and at its collapse the bank had operations in 15 countries. The scope of Kaupthing's operations is, therefore, large and the valuation of Kaupthing‘s assets as at H1 2011 amounted to ISK 1.040bn.

The operating cost of the Estate in H1 2011, i.e. for both the Resolution Committee and the Winding-up Committee, amounted to ISK 6.280bn.

• Total annualized operating costs in H1 2011 were approx. 0,30% of the total carrying value as at H1 2011.
• ISK 366 million or 11% of the Estate’s operating costs in the period (H1 2011), is in the form of VAT and other taxes.
• The largest items in external advisory costs are related to the activities of the Estate’s financial advisor, forensic work conducted by the Inspection Committee and the settlement of the derivatives book.
• Other expenses include expenses related to IT services, housing, offices, custody services, travelling and other staff and administration items.

Further information on Kaupthing's operation can be found in chapter 1.3 Operations of the Estate of the
Creditors' Report.

From the outset the Estate has followed a structured process when and how decisions are being made regarding potential asset disposals. The Estate is not actively trying to sell off assets and has strongly refused any fire sale bids; however, all reasonable potential monetization possibilities are examined. To that end, all loan and equity positions managed by the asset management team have a dedicated account- and portfolio manager who constantly monitors the performance and monetization opportunities for each asset.

Further information on the asset disposal process can be found in the Creditors' Report
chapter 2.2.2 Positions under Asset Management – Process and Procedures.

Interested parties can send enquiries to creditorcontact@kaupthing.com

On 21 October 2008, the FME decided to transfer a part of Kaupthing's operations to a New Kaupthing Bank (now Arion Bank) that has been incorporated. According to the FME this decision was made to ensure continued banking operations for Icelandic individuals and businesses.

The decision of the FME on 21 October 2008 to transfer part of the Bank’s operations to a New Kaupthing Bank hf. (now Arion Bank) means, inter alia, that Arion Bank takes over all of the Bank's deposits in Iceland, and also the bulk of the Bank's assets that relate to its Icelandic operations, such as loans and other claims.

More information can be found on the FME's website

According to guidance from the FME, all actual bank accounts are transferred from Kaupthing to Arion Bank, regardless of who the customer was (both from credit institutions and customers). In the case of money market agreements, the FME decided to categorise such transfers as deposits, except in instances when the counterparty of Kaupthing was another financial undertaking. So deposits from financial undertakings transferred to Arion Bank are only bank accounts that credit institutions have in Kaupthing.

In December 2009, Kaupthing announced it would acquired 87% of the share capital in Arion Bank but 13% would remain under Government ownership. In accordance with FME‘s conditions, Kaupthing's subsidiary Kaupskil ehf. holds Kaupthing's shares in Arion Bank.

The Board of Directors of Arion Bank was appointed in accordance with the terms stipulated by the FME on Kaupskil’s ownership of Arion Bank, which stated that the majority of board members, including the Chairman, should be independent of Kaupthing and individual creditors.

Further information on Arion Bank can be found on Arion Bank's website