30-Mar-2016: Liquidators' Update, see Deloitte site

Press Release 10-Feb-09


The Court approved informal Landsbanki Creditors’ Committee held its first
full meeting today at the offices of the Administrators, Deloitte.

Administration - where a company's business is taken over by insolvency
specialists with a view to rescuing it, or producing a better outcome for
creditors than if it was wound up immediately - is a relatively new
phenomenon on the Island. Guernsey law does not provide for a formal
creditors’ committee, whose representations the Administrators are duty-bound to consider.

Matthew Dorman, a member of the Creditors’ Committee as well as one of the
members of the Landsbanki Guernsey Depositors Action Group campaign
committee, said today:

“Although, unlike the mainland, Guernsey law does not require it, it is good
practice to have a Creditors’ Committee, so the Administrators sought the approval of the Court for the formation of an informal committee. The Court approved this proposal, and five members were appointed, consisting of four residents of the Islands and myself, following a vote at the full creditors' meeting held on 20 January 2009. We have had a very productive session today and I am very impressed by the way the Administrators are carrying out their responsibilities.”

He continued, “Much of the information discussed in the meeting is subject to
normal commercial non-disclosure terms in order not to prejudice the best
recovery of the Bank's assets, but from what we have seen, I can state that
we are convinced that the Administrators are doing a first class job, and
looking to make the best recoveries possible in the circumstances.”

Mr Dorman thinks that notwithstanding these efforts, if the hundreds of
Landsbanki depositors in Guernsey, the other Channel Islands and British expatriates who placed their life savings in the bank are not to become the only British savers to lose money in the global credit crunch, the States and the British Government are going to have to find a proactive way forward.

[ Click here for a PDF copy of the release ]