The Resolution Committee/Interim Board:

On March 21st 2009, the Financial Supervisory Authority assumed the powers of a shareholders’ meeting of SPRON, dismissed the Board and appointed a Resolution Committee. The FSA also assigned New Kaupthing Bank the depository obligations of SPRON, see here. Under Act no. 44/2009 that amended Act no. 161/2002 on Financial institutions, the Resolution Committee became an Interim Board, which had the same obligations as a Resolution Committee.

The Winding-Up Board

In June of 2009, the Interim Board‘s designated three month working period was up, in accordance with Art. 100 a. of the Financial Institutions Act No. 161/2002. On June 23rd, Reykjavik District Court accepted the Interim Board‘s request to appoint a Winding-Up Board to SPRON. The Winding-Up Board‘s primary function is to protect the interests of SPRON‘s creditors, and to oversee the lodging of claims in accordance with Art. 102, par 2, of the Financial Institutions Act No. 161/2002.

News

Settlement of the dispute with Icebalt-Invest ehf.

The Winding-up Board of SPRON has today successfully resolved the dispute brought by a litigation Ice-Balt Invest ehf. initiated against Drómi hf. The parties concluded the dispute with a settlement before the District Court of Reykjavik. Based on the settlement, the plaintiff fully withdraws its claims against Drómi hf. Neither Drómi hf. nor SPRON have to make any payments to Ice-Balt Invest ehf. The result of the settlement for the composition of SPRON is that SPRON no longer has to set aside ISK 600 million as a reserve for the dispute. This amount can be distributed to the creditors of SPRON through payments of the Notes, to be issued according to the composition.