Landsbanki predicts 99 percent Icesave payout

The winding up and resolution committees of Old Landsbanki held a press conference today where they revealed that the bank’s assets are now expected to cover 99 percent of priority claims — including Icesave.

It is worth noting that Dutch and British interest claims on Landsbanki are not included in that figure, as they are not classified as priority claims. Priority claims are said to amount to ISK 1,319 billion and expected recovery stands at ISK 1,300 billion (EUR 7.91 billion).

DV reports that of the assets the resolution committee realistically expects to recover, some 60 percent is already considered secure. Of that 60 percent, around ISK 408 billion already exists as cash — which is a third of the total.

Expected recovery has increased by ISK 70.1 billion (or six percent) since the last Landsbanki estimate was released at the New Year. ISK 33.3 billion (3 percent) of that is down to exchange rate fluctuation.

The press conference also clarified that the sale process of the bank’s large share in the UK’s Iceland Foods has begun under the advisement of Switzerland’s UBS Bank and Bank of America Merrill Lynch. It is believed the market conditions are good for such a sale at the moment, as investors are still playing fairly safe and Iceland Foods is performing well.