Kaupthing launches its composition proposal

Posted 28/10/2015 - 20:53 by anrigaut

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2015-10-28 (All day)

Creditors have previously indicated that the implementation of a composition proposal, as opposed to bankruptcy proceedings, is the preferred route to achieve distributions from the Kaupthing estate. ....

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Today, the CBI announced that it has concluded that the Revised Stability Contribution satisfies the requirements set forth in the Foreign Exchange Act, and that the fulfilment of the composition agreement together with the proposed countervailing measures will not jeopardise monetary, exchange rate or financial stability, which are the conditions for providing the necessary exemptions from currency control restrictions.

Kaupthing now awaits a formal response from the CBI to the October 2015 Exemption Request. Once the exemptions contemplated by the October 2015 Exemption Request are granted by the CBI, Kaupthing will be able to make payments to its unsecured creditors pursuant to an approved composition agreement, subject to making the Revised Stability Contribution in favour of the CBI, or other such entity as the CBI may designate. Kaupthing will provide creditors with an update on the progress of the exemption application in due course.

Composition launched

On Friday, 23 October 2015, Kaupthing gave notice to its creditors of the launch of its composition proposal by making the proposal document and related information memorandum available to those creditors which are entitled to vote on the composition proposal according to the Act on Bankruptcy (No. 21/1991), via its secure website ...

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Kaupthing is convening two open creditors’ meetings in November 2015, including (i) an open creditors’ meeting on or around 11 November 2015, to provide an update on the composition process and seek creditors’ support in relation to the making of the Revised Stability Contribution and (ii) if that is supported, a second open creditors’ meeting on Tuesday, 24 November 2015 to vote on Kaupthing’ composition proposal.

The Winding-up Committee is, as ever before, committed to do its utmost to ensure that the winding-up proceedings can be concluded through an approved composition agreement before the year end, subject to the Revised Stability Contribution and the composition proposal being supported by the requisite majority of creditors in creditors’ meetings and subject to the CBI granting the necessary exemptions from currency control restrictions.