Straumur initiates work on a debt restructuring plan together with its creditors

straumur_logo1PRESS RELEASE FROM STRAUMUR BURDARAS BANK:

On 19 March, 2009 Straumur Burdaras Investment Bank hf. (Straumur) requested an authorisation for a moratorium process from the District Court of Reykjavík. The process would enable Straumur to facilitate a financial and operational restructuring in co-operation with the bank’s creditors.

Since 19 March Straumur management has met with its major creditors and presented a plan for a restructuring of the company. As a result of these discussions the major creditors have agreed to enter into a restructuring process.

Major creditors, including both Icelandic and foreign banks are in the process of forming a Creditors Coordination Committee, and Straumur will appoint this committee to lead the work together with its management, its Resolution Committee.

The plan aims at reestablishing Straumur as a company whose main purpose would be to manage its assets and liabilities in order to maximize value for the benefit of its creditors and other stakeholders in the company.

The major creditors, Straumur’s management and its Resolution Committee have agreed to begin work on the restructuring plan, including due diligence of the assets and liabilities, establishment of the future business plan for the asset management operation and addressing the legal issues related to the structuring of the future platform. The aim is to complete this work within the announced moratorium process.