Kaupthing seeks recognition of moratorium in the U.S.

kaupthing_is_center_blackPRESS RELEASE FROM KAUPTHING BANK:

Kaupthing Bank hf. (the “Bank”) has on 30 November 2008 filed a voluntary petition under Chapter 15 of the US Bankruptcy Code, in order to seek US recognition of the Bank’s moratorium, which has been granted by the District Court of Reykjavik, Iceland. The purpose of the filing is to obtain protection for the Bank’s assets in the US, similar to the moratorium protection in the European Economic Area, pursuant to Directive 2001/24/EC on the reorganisation and winding-up of credit institutions, in order to be able to maximize recovery to, and provide for an equitable distribution of value among, all creditors. The Bank has furthermore, at a hearing on December 1, been granted provisional injunctive relief under the US Bankruptcy Code.