The Winding-up Committee of Kaupthing bank has sent creditors notices on the decision on claims against the Bank. Claimants should receive their notice this week. Information is provided in the notice about where to access the claim list along with usernames and a password. The claim list will be made available to creditors of Kaupthing Bank on 22 January 2010.

Please notice that the pro forma objection will be made available on the website www.kaupthing.com as soon as the list of claims is published. The list of claims will be published on 22 January 2010.

Kaupthing Bank’s website provides information on the claiming and winding-up process. Interested parties can furthermore subscribe to press releases and latest alerts.

The deadline for submitting claims was Wednesday, December 30, 2009.

Claims not filed within the aforementioned time limit, the claim against Kaupthing Bank hf. are considered null and void according to Article 118 of the Act no. 21/1991 on Bankruptcy etc. unless the exceptions specified in sub-paragraphs 1-6 of the said article are applicable.

When the deadline for submitting claims has passed, the Winding‐up Committee will prepare a list of submitted claims, stating its stand with respect to each claim. The list shall state the nature of each claim, their amounts, and their requested priority, in accordance with Article 119 of the Bankruptcy Act.

If the Winding‐up Committee does not recognise a claim in full, in the form it is stated, the relevant claimant will be notified at least one week before a creditors’ meeting is held to consider the list of submitted claims.

Any claimant unwilling to accept the stand taken by the Winding-up Committee towards his/her claim, shall state his/her objections at the meeting of creditors, held to consider the list of submitted claims.

The first creditors’ meeting, to consider the list of submitted claims, will be held on Friday 29 January 2010 at 10:00 a.m. at Hilton Hotel Nordica, Sudurlandsbraut 2, Reykjavik. Any party who has filed a claim against the bank is entitled to attend the meeting. The meeting will discuss the list of submitted claims and the Winding‐up Committee's stand with respect to claims insofar as it is available.


If an objection is raised at the first creditors’ meeting against the Winding‐up Committee's stand, the Winding‐up Committee shall attempt to settle the dispute. Following the first creditors’ meeting the Winding‐up Committee will attempt to resolve disputes in due course. If the dispute cannot be settled in this manner, the Winding‐up Committee shall refer the matter to the District Court of Reykjavik.

Objections received in writing from a creditor who does not attend the meeting in person will be taken into account at the meeting. Creditors who attend the meeting may also object the decision.

A stand, taken by the Winding-up Committee with repect to a claim, which is not opposed at the creditors’ meeting, or in a letter received by the Winding-up Committee no later than the time of the meeting, is final.

Please observe that the deadline for filing claims passed on midnight 30 December 2009. According to Article 118 of the Act on Bankruptcy ect. No. 21/1991 if a claim was not filed within the deadline the claim against Kaupthing Bank hf. is considered null and void unless the exceptions specified in sub-paragraphs 1 – 6 of Article 118 are applicable.

The first creditors’ meeting, to consider claims against Kaupthing Bank, will be held on Friday 29 January 2010 at 10:00 a.m. at Hilton Hotel Nordica, Sudurlandsbraut 2, Reykjavik.

The meeting will discuss the list of submitted claims and the Winding‐up Committee's stand with respect to claims insofar as it is available.

If it proves impossible to conclude decisions prior to the creditor’s meeting on all claims submitted due to the scope and number of claims, the Winding-up Committee may convene a follow-up meeting to conclude the process.

When the period for stating claims is over, the Winding-up Committee will prepare a list of submitted claims, stating its stand with respect to each claim. The list shall state the nature of each claim, their amounts, and their requested priority, in accordance with Article 119 of the Bankruptcy Act.

Only creditors that have filed a claim against Kaupthing Bank or their authorized representative are entitled to attend the creditors’ meeting.

An attorney or agent may attend the meeting on behalf of a creditor if they bring proof that they are entitled to represent you at the meeting. This will need to be a signed power of attorney.

At this stage, it is not possible to estimate the realisable value of the Bank’s assets. Due to this, it is not possible to estimate the total payments to the Bank's creditors.

Attention should be drawn to the fact that payments will not be made immediately following the first creditors’ meeting. Further details on the timing of asset realisation and payments to creditors will be released when they become available.

When bonds are blocked, they are “frozen” by the relevant depository to ensure that they are prevented from being traded. The depositories will provide information to the Winding-Up Committee about blocked positions, and the blocking number will provide a link from a particular bond position to a particular claim. This will help the Winding-Up Committee confirm the ownership of a bond position that is included in a bond claim form. In the case of bonds held through Euroclear, Clearstream, and DTC, any payment in connection with the claim will be made to the blocked position except for those claims that are transferred (see question #5 below). In the case of bonds held through another depository, any payment in connection with the claim will be made in accordance with the account information provided in the bond claim form.

As a general matter, no. The Winding-Up Committee will consider on a case-by-case basis requests to unblock a bond position, however, requests to unblock or cancel a prior request to block a bond position have thus far been granted only in limited circumstances, such as manifest error. In any scenario in which the Winding-Up Committee consents to a request unblock or cancel a prior request to block, such consent should not be construed as a statement by the Winding-Up Committee regarding the value (if any) of the bonds to be unblocked.

In filed a claim on or before the deadline (i.e., 30 December 2009) you do still have the opportunity to obtain a blocking number. To obtain the number you should first contact Epiq Bankruptcy Solutions, the Winding-up Committee´s Claim Transfer Agent, by telephone at 646.282.2400 or email via l kaupthing@epiqsystems.com. Epiq will notify the relevant depository (i.e., Euroclear, Clearstream or DTC) that the Winding-Up Committee has agreed to allow you to obtain a blocking number. You will then be required to seek a blocking number through your accountholder according to the standard procedures required by the relevant depository. Epiq cannot assist you in that part of the process. Please note that failure to provide a blocking number as part of your claim - for any reason - will potentially affect the Winding-Up Committee’s ability to verify and, therefore, properly determine the validity of your claim related to Kaupthing Bonds.

ISIN codes for Kaupthing Bonds and Final terms can be found on our website.

Yes, with certain exceptions. Claims lodged against the bank may be transferred. According to Article 115 of the Act on Bankruptcy etc. the holder of a claim assigned or otherwise transferred shall also enjoy the rights against a bankruptcy estate provided for in Articles 109-114 of the Act.

Take notice that the exact periods of time during which transfers will not be recognized, and the fees charged for processing transfers (see below), are subject to change at the discretion of the Winding-Up Committee

Under Icelandic law, a claimant is permitted to sell its claim. However, the Winding-Up Committee will only recognize such a transfer and accordingly make any future payment to the transferee if the Winding-Up Committee is notified of the transfer by both the buyer and the seller, and the transfer is perfected in accordance with the procedures set forth in these FAQs such that the Winding-Up Committee has received clear indication of whom is now entitled to the proceeds of the claim that was transferred.

The Winding-up Committee takes no position as to the validity of a claim to be transferred. Confirmation that a claim has been traded in accordance with the procedures promulgated by the Winding-up Committee does not constitute evidence of a valid claim. The parties to the transfer accept the risk that the claim being traded may ultimately be rejected by the Winding-up Committee. The Winding-up Committee reserves all rights with respect to any traded claims, including the right to reject such claim.

The Winding-Up Committee has established certain fees to defray the cost associated with administering claim transfers. The fee: (a) $500 for the proposed transfer of the full amount of a claim; or (b) $1,000 for each proposed transfer of a partial amount of a claim. The fees are intended to absorb entirely the costs associated with receipt, registration, review, noticing, scanning, reporting and communication with parties to the transfer regarding the preparation or status of transfers. As to partial transfers, the basis for the increased fee is that the increased complexity and risk associated with each partial transfer will, accordingly, require additional and higher level scrutiny to ensure that all such transfers are accurately administered.

The Winding-Up Committee takes no position as to which party to a proposed claim transfer is responsible for the payment of the above-referenced fees. Payment of the fee must be received upon submission of the Claim Transfer Request Form (referred to in Question 6 below). Checks should be made payable to “Epiq Bankruptcy Solutions, LLC, as Agent to the Winding-Up Committee of Kaupthing Banki hf” and shall include the name of the transferor, transferee and the claim reference number. Wire transfers may be made using instructions to be provided upon request by contacting Epiq at +646.282.2400.

The Winding-Up Committee is unable to allow the unblocking and re-blocking of Kaupthing Bond positions in connection with claim transfers. The Winding-Up Committee will maintain its claim system so as to reflect all properly effectuated transfers. The Winding-Up Committee expects to make payments on account of transferred claims by utilizing the disbursement information for the Transferee that is provided in the Claim Transfer Request Form.

If individual creditors wish to make their own arrangements during periods when the Winding-Up Committee stops recognizing transfers, they will do so at their own risk. Notwithstanding any purported transfer of a claim, in such a case, it is the original claimant that will be paid and a private transaction will not create any rights of action against the Winding-Up Committee.

In addition, the Winding-Up Committee reserves the right to make any payment to the original claimant, notwithstanding any purported transfer of a claim, if the Winding-Up Committee is not satisfied that the procedures set forth in the FAQs have been complied with and / or the submitted documentation does not provide satisfactory evidence of the transfer, new ownership, or account information for the new owner of the claim.

Following 29 January 2010, if you wish to trade your claim, including one related to Kaupthing Bonds, and you would like the Winding-Up Committee to make any future payment to the buyer of the claim, the Winding-Up Commmittee must be notified of the transfer by the submission of the Claim Transfer Request Form. This form must be completed by both the seller and buyer of the claim (or portion thereof), and you must provide the Winding-Up Committee with any required documentation relating to the transfer of the claim. Claim Transfer Request Forms and related materials should be sent to:

Winding-Up Committee of Kaupthing Banki hf
c/o Epiq Bankruptcy Solutions, LLC
757 Third Avenue
New York, NY 10017
U.S.A.
Attn: Kaupthing Claim Transfer Agent

Or

Winding-Up Committee of Kaupthing Banki hf
c/o Epiq Systems Ltd.
235 St John St
London EC1V 4NG
Attn: Kaupthing Claim Transfer Agent

The Winding-Up Committee will notify you if additional information is required to cure a deficiency in the Claim Transfer Request Form. In such case, the parties involved in the transfer will have thirty (30) days to cure the deficiencies or the proposed transfer will be deemed “withdrawn.”

The Winding-Up Committee will not recognize concurrent transfers of claims. A transfer of a claim or portion thereof must settle – i.e., the transfer must be reflected in the Winding-Up Committee claim system with a status of “Confirmed” - before that claim or portion thereof can be traded again (in whole or part).

Parties to a proposed claim transfer that is determined by the Winding-Up Committee as properly submitted will be notified and will have twenty-one (21) days from the date of service of such notice to object to the transfer.

Upon receipt of an objection from the transferor and/or transferee to the proposed transfer, the proposed transfer will be deemed “withdrawn” by the parties.

Absent an objection during the twenty-one (21) day period, the transfer will be recognized by the Winding-Up Committee, and the transferee will be listed as the new holder of the “original” claim (in the case of a full claim transfer) or the holder of a new claim (in the case of a partial claim transfer). In the case of a partial claim transfer, the amount of the “original” claim will be updated in light of such transfer. For all claims reflected in the Winding-Up Committee claim system as “confirmed,” the Winding-Up Committee will – as soon as practicable - notify the transferor and transferee of the successful claim transfer via Notice of Successful Transfer.

A person (such as an agent, trustee, paying agent, clearing agent, lawyer or other adviser) may assert a claim on behalf of another. In order to effectuate a transfer of a claim asserted in this manner, such person must be the party that signs the Claim Transfer Request Form as the proposed transferor of the claim.

The Claim Transfer Request Form is available on the www.kaupthing.com website.

The Winding-Up Committee is unable to make payments on account of transferred Kaupthing Bond claims through the depository system (e.g., DTC, Euroclear, Clearstream or other regional depository). Claim Transfer Request Forms relating to transfers of Kaupthing Bond claims must, therefore, include information that is sufficient to allow the Winding-Up Committee to make a cash or in-kind payment to the transferee directly.

The Claim Transfer Request Form requires that the transferor and transferee specify whether the claim to be transferred is for the full amount of the asserted claim or a partial amount of the asserted claim. In the case of a partial claim transfer, the total amount of the “original” claim must be stated, as well as the proposed partial amount of the claim that is proposed to be transferred. Upon the successful completion of a partial claim transfer, the Winding-Up Committee will create a new claim record identifying the transferred claim, and the “original” claim will be updated correspondingly. Given the increased burden on the Winding-Up Committee to administer and track partial claim transfers of a single claim, the fee required to effectuate a partial claim transfer is $1,000 for each partial transfer.

If a creditor possesses more than one composition claim against a debtor, the claims shall be added together and regarded as one single composition claim, without regard to their origin or other facts.

According to Article 30 (4) of the Act on Bankruptcy etc., a creditor who possesses more than one claim against the debtor has assigned such a claim to another party three months before the reference date or later, the claims, added together, shall also be regarded as one composition claim, but the assignee shall be entitled to a share of the composition claim in proportion to his share. The same procedure shall be applied in the event of any other transfer.

Please address queries in the first instance to the Winding-Up Committee at winding-up@kaupthing.com or you may contact Kaupthing’s claims agent Epiq Bankruptcy Solutions, LLC by telephone at +1 646.282.2400. If by mail please send queries to the following address:

Epiq Bankruptcy Solutions, LLC
757 Third Avenue
3rd Floor
New York, NY 10017
U.S.A.