Kaupthing Composition - Exemption granted by the Central Bank of Iceland
Kaupthing has today, 15 January 2016, been granted the final exemption by the Central Bank of Iceland which will permit it to proceed with the implementation of the Composition Agreement.
Initial distributions of the De Minimis Cash Payments, the Composition Cash Payments, Notes and Shares will be initiated in accordance with the Composition Agreement which was approved at the Composition Voting Meeting on 24 November 2015, confirmed by the District Court of Reykjavik on 15 December 2015 and became final and binding under Icelandic law with effect from 23 December 2015.
Kaupthing will today initiate the payment of the De Minimis Cash Payments and Composition Cash Payments to eligible creditors who have properly completed and submitted valid Entitlement Letters before the relevant deadlines.
Kaupthing will also shortly be issuing (i) GBP denominated non-interest bearing convertible notes (the “Notes”) and commencing the distribution and settlement process for those Notes on the same day, and (ii) ISK denominated ordinary shares in Kaupthing ehf. (the “Shares”), in each case to be distributed to Composition Entitlement Creditors who are eligible to receive Notes and Shares and who have properly completed and submitted valid Entitlement Letters before the relevant deadlines.
Kaupthing will make separate announcements in relation to the issuance and delivery of the Notes and the Shares in due course.
The entitlements of certain creditors including those creditors who are Ineligible Persons or who have not properly completed and submitted valid Entitlement Letters will be subject to the custody arrangements described in the Information Memorandum.
A meeting of Kaupthing’s shareholders will be held to appoint the new board of directors in due course after the Notes and the Shares have been issued.
Words and expressions defined in the Information Memorandum have the same meanings when used in this announcement. The Composition Agreement and other related documentation, including the Information Memorandum are available in the ‘Restructuring Documents’ section of the Kaupthing secure website, accessible at https://creditors.kaupthing.com.