Landsbanki predicts it can repay Icesave debt, and more

In accordance with previous estimations, it is still predicted that recoveries from the bankrupt estate of Iceland’s Landsbanki Islands hf. will cover UK and Dutch deposits in Icesave; with surplus.

Proceeds of asset liquidation in the old bank so far have far exceeded expectations, RUV reported. It is now believed returns will amount to ISK 1,332 billion (nearly EUR 8.2 billion) — which is ISK 13 billion more than needed to meet priority claimants’ demands.

New estimates of the value of the bankrupt bank’s assets at the end of June were presented to creditors yesterday. The figures point to a successful second quarter for the resolution committee — with predicted returns going up by ISK 45 billion between quarters. Counted in foreign currencies, the actual increase is more like ISK 32 billion — the difference being cause by exchange rate fluctuations.

Landsbanki asset recovery and repayment uses a set exchange rate from 22nd September 2009. Using that rate, the predicted asset recovery is ISK 1,332 billion; which is ISK 13 billion more than the amount due to priority claimants. That amount added up to ISK 1,319 billion as of 30th June.

In other words, it is predicted that, at the end of the first two quarters of 2011, the recovery of Landsbanki assets will exceed priority claimants’ claims by ISK 13 billion. The lion’s share of the priority claims come from the British and Dutch governments, who reimbursed Icesave online savers following the demise of Landsbanki.

Comments are closed.