The Winding-up Board of Byr Savings Bank has published time limits to file claims against the Bank, in accordance with Icelandic Law. Creditors have been invited to submit their claims in writing within three months from 13 July 2010 when the formal claim notice was published in the Icelandic Law and Ministerial Gazette (Lögbirtingablaðið). The deadline for submitting claims is therefore 13 October 2010.
If you are claiming debts or other rights from Byr Savings Bank, you need to make a statement of your claim, which needs to be in writing and state the claim as clearly as possible. See Article 117 of Act no. 21/1991 on Bankruptcy.
You need to set out clearly:
- The amount you ar claiming, including interests and other costs.
- The priority requested for the claim in the order of claims.
- Any claim for security.
- Any claim regarding other specific rights against the Bank
- In whose interest it is submitted.
- The basis you are making the Claim.
- Any other facts that need to be mentioned for context, shall be stated in a statement of claim.
It is important that you attach all documents supporting the claim, so the Winding-up Board can assess and value your claim.
If you don't request a priority for the claim, the claim will in most cases be considered an ordinary claim according to Article 113 of Act no. 21/1991 on Bankruptcy or a deferred claim according to Article 114, as applicable.
You can either send in your own claim form, in accordance with the above, or use the Standard Claim Form.
By filing a claim, you are deemed to have waived the rights to confidentiality (bank secrecy) with regard to the claim in question.
Claims shall be sent to:
Byr Savings Bank
Your claim needs to arrive at the above mentioned address before midnight 13 October 2010.
If a claim is not filed within the aforementioned time limit, the claim is considered null and void according to Article 118 of Act no. 21/1991 on Bankruptcy, unless the exceptions specified in sub-paragraphs 1 to 6 of the said Article apply.
Who can register the claim?
Attorney or other agent may file a claim on behalf of a creditor. The attorney or agent must state for whose benefit it is made and that he/she has full authority to file the claim and represent the creditor in all respect.
Is there a standard form to file a claim?
You can file a claim using the Standard Claim Form.
You can also send in your own claim form, as long as it fulfills the requirements stated in Article 117 of Act no. 21/1991 on Bankruptcy.
What language should I use when filing a claim?
Creditors from member states of the European Economic Area or the European Free Trade Association may file claims in the language of that state. Such claims submissions must be accompanied by an Icelandic translation. However it is permitted to file a claim in English without having it translated to Icelandic. Other creditors may file their claims in Icelandic or English.
If the documentation accompanying a claim submitted is in a language other than Icelandic or English, a translation into either of these languages must be included.
What currency and exchange rate should I use when filing a claim?
Claims in foreign currencies should be filed in the relevant currency and converted at the exchange rate published by the Central Bank of Iceland on 2 July 2010.
What evidence must be provided to support a claim?
You need to attach to the claim a copy of the loan agreement, indenture, bond, note or other contract and identifying information which gives you the right to make your claim. If your claim is not based on a contract, you should provide evidence which you think is sufficient to justify your claim.
It is important that you enclose all documents supporting your claim, because insufficient information may cause a claim to be rejected.
What is the procedure after I have filed a claim?
When the period for stating claims is over, the Winding-up Board will prepare a list of submitted claims, stating its independent standpoint as to how each claim shall be recognized.
If the Winding-up Board does not recognize a claim in full, in the form it is stated, it will notify the claimant in question at least one week before a creditors' meeting is held to consider the list of claims.
Creditors meeting will be held on Wednesday 17 November 2010 at 3 PM at Grand Hotel Reykjavik. Any party who has filed a valid claim against the Bank is entitled to attend the meeting. The meeting will discuss the list of filed claims and the Winding-up Board's position towards the recognition of claims insofar as it is available.
If an objection is raised at the first creditors' meeting against the Winding-up Board's position, the Winding-up Board shall endeavor to settle the dispute. Following the first creditors' meeting, the Winding-up Board will attempt to resolve disputes in due course. If the dispute cannot be settled in this manner, the Winding-up Board shall refer the matter to the District Court of Reykjavik
How are claims ranked?
As stated in Article 117 of Act no. 21/1991 on Bankruptcy, you need to set out clearly the priority requested for the claim in the order of claims. The priority ranking of claims is stated in chapter XVII Article 109 to 114 of the Act and is in principle as follows:
- Assets and interests in the possession of the Bank. (Article 109)
- Claims on the estate resulting from a contract concluded after the entry into force of the Act or claims arising after the reference date as a result of measures approved by the Appointee. (Article 110)
- Claims secured by collateral or other security interest in the Bank's assets, to the extent they can be settled by means of the proceedings from the sale of the relevant assets and any income derived from them. Any amount of claim remaining after the value of the secured assets has been deducted will normally rank as a general claim. (Article 111)
- Priority claims, including various wage claims and claims on deposits. (Article 112 as amended with article 6 of Act no. 44/2009.)
- Unsecured claims. (Article 113)
- Deferred claims. In particular this often includes any claims for interest arising after 2 June 2010 and often the costs of enforcing claim after the same period. (Article 114)
If you are claiming priority, you should state the reason you believe your claim is entitled to priority treatment and provide appropriate evidence to support this.
When is the first creditors meeting?
On Wednesday 17 November 2010 at 3 PM at Grand Hotel Reykjavik. Any party who has filed a valid claim against the Bank is entitled to attend the meeting. The meeting will discuss the list of filed claims and the Winding-up Board's position towards the recognition of claims insofar as it is available.
Can someone attend the creditors meeting on my behalf?
Yes, attorney or other agent can attend the creditors meeting on your behalf, but is required to bring a proof that they are entitled to represent you at the meeting.
How much will I get back and when will I be paid?
In the current financial environment, it is not possible to estimate at this stage the realizable value of the assets. Due to this and other uncertainties, it is therefore not possible to estimate the total payments to the Bank's creditors.
Attention is drawn to the fact that payments will not be made immediately following the first creditors' meeting. Further details on the timing of assets realization and payments to creditors will be realised when they become available.
What happens if I don't file a claim?
Your claim needs to arrive at the above mentioned address before midnight 13 October 2010. If a claim is not filed within the aforementioned time limit, the claim against Byr Savings Bank is considered null and void according to Article 118 of Act no. 21/1999 on Bankruptcy, unless the exceptions specified in sub-paragraphs 1 to 6 of the said Article are applicable.