Slaughter and May is advising Glitnir hf. - proposed composition

Slaughter and May is advising the Winding-up Board of Glitnir hf. on a proposed composition with its creditors (the Composition).

Glitnir hf. (Glitnir) was one of the three major Icelandic banks which were brought under the control of the Icelandic government in October 2008 following their collapse in the global financial crisis. The total claims against the Glitnir estate amount to more than ISK 2,250 billion. The Winding-up Board was appointed in May 2009 to conduct the winding-up proceedings. Slaughter and May was engaged in 2011.

The full terms of the proposed Composition were announced on 6 November 2015 and represent the culmination of extensive engagement with Glitnir's creditors and their representatives, Icelandic governmental authorities and other stakeholders over the past five years.

The Composition is conditional upon the approval of Glitnir's creditors at a meeting which will be held on 20 November 2015 and confirmation by the Icelandic courts. If approved, the Composition will involve cash payments in various currencies and the issuance of new ordinary shares in Glitnir and new privately registered notes.

As a pre-condition to making these payments, Glitnir will be required to make substantial transfers of its ISK assets (including its 95% stake in Islandsbanki hf) to the Icelandic State.

Moelis & Company are acting as financial advisers to Glitnir in connection with the Composition.

BBA Legal advised Glitnir on Icelandic law and Paul, Weiss, Rifkind, Wharton & Garrison advised on U.S. law.