Islandsbanki gains Icelandair Group investment

icelandair-flying-plane1Two companies with significant holdings in Icelandair Group have had assets seized due to financial difficulties – leaving Islandsbanki Bank with a 47 percent share in Icelandair Group.

The Bank points out in a press statement that Icelandair Group is not at fault in the collapse of two shareholding companies; and claims to be relatively happy with the situation:

“Icelandair Group’s operations have gone better than expected in the first quarter. Over recent months, the company has been working on a financial reorganisation in collaboration with Islandsbanki. The project is going well and the Bank wants to continue its co-operation with the current Icelandair management,” the statement reads.

Icelandair Group will continue to be traded on the Nasdaq OMX stock exchange in Reykjavik and Islandsbanki intends to sell its stake on the open market at a time best suited to all stakeholders.

Iceland’s Financial Supervisory Authority (FME) has granted Islandsbanki short term permission to hold its 47 percent stake in Icelandair Group; but the Bank must reduce its holdings to 30 percent or less as soon as possible.

The two companies, Mattur Investment ehf. and Naust ehf., used loans from Islandsbanki to buy investments, making it relatively simple for the Bank to seize those investments in the event of the companies’ default.

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