Composition Proposal confirmed by the District Court


The composition agreement for SPB hf. (the “Composition”), which was accepted by SPB‘s creditors in a voting on the 16th of December 2015, was confirmed by the Reykjavík District Court on the 28th of January 2016. The Composition became effective on the 4th of February 2016, a week after the date of the District Court´s order confirming it, as is provided for in art. 59 in the act on bankruptcy etc., no. 21/1991.


According to the Composition the following payments shall be paid within 30 days from the date the Composition becoming effective:


1.            All composition creditors will receive an amount which is equivalent to 15% of the nominal value of their claims.

2.            De Minimis Payment, as defined in the Composition, paid to those creditors who are not composition creditors.


These payments will be made as soon as the formal exemption from the Central Bank is received and other formalities are fulfilled.


Further payments are subject to conclusions of the outstanding court disputes, development of the value of SPB´s assets and the fluctuation of the exchange rate of the currencies owned by SPB, as is further defined in the Composition.