A composition for Byr Savings Bank was approved at a creditors' meeting on 9 December 2015 and confirmed by the District Court of Reykjavik on 8 January 2016.


This concludes the winding-up process.



What will happen to the Bank


Byr Savings Bank will now be an up and running company.


Its sole purpose will be to preserve its assets, solve outstanding disputes and once solved, distribute all its assets, net of stability contribution, to the holders of its debt instruments and guarantee capital.


The legal form of the Bank is a non-profit organisation (Icelandic: "sjálfseignarstofnun" or "ses.").  This is as before, but the difference is that when it had a bank license it operated in accordance with the Act no 161/2002 on Financial Companies, but now it operates in accordance with the Act no 2/1995 on Limited Liability Companies.


The name of the Bank will change to Old Byr.



How will the structure of the Bank change


All claims and guarantee capital will be written off.


A new holding company will be formed, called Old Byr Holding ehf., which will operate in accordance with the Act no 138/1994 on Private Limited Liability Companies.  Its sole purpose will be to own Old Byr.


Old Byr will issue ISK 4.000.000 new guarantee capital to Old Byr Holding ehf.


Old Byr will issue EUR 50.000.000 non interest bearing debt instruments to the composition creditors.


Old Byr Holding ehf. will distribute its ISK 4.000.000 share capital to the composition creditors.



What will happen to creditors' claims


All claims will be written off.  Instead creditors will get:


a) De Minimis payment amounting up to ISK 1.250.000 each.  Meaning that those who had claims totaling less than ISK 1.250.000 will be paid in full and those that had higher claims will get ISK 1.250.000.


b) Pro rata share in EUR 50.000.000 non interest bearing debt instruments issued by Old Byr.


c) Pro rata share in ISK 4.000.000 share capital of Old Byr Holding ehf.