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Iceland Bank to Pay $3.8 Billion After Krona Controls Lifted

The Central Bank of Iceland has today granted Glitnir the final exemption to permit Glitnir to proceed with the implementation of the Composition. This follows the Composition which was approved by creditors on 20 November and confirmed by the District Court on 7 December, which court approval became final and binding under Icelandic law with effect from 14 December.

Glitnir will make the De Minimis Payment to creditors who have returned duly completed De Minimis Creditor Forms on 17 December 2015.

The Initial Cash Distribution will be made to entitled Composition Creditors who have returned duly completed Creditor Forms on 18 December 2015.

New Notes and New Ordinary Shares will be issued to entitled Composition Creditors who have returned duly completed Creditor Forms no later than 11 January 2016.

The entitlements of Ineligible creditors and creditors who have not returned duly completed Creditor Forms or De minimis Creditor Forms (as applicable) will be subject to the Custody Arrangements as described in the Explanatory Memorandum.

A meeting of Glitnir’s shareholders to appoint the new board of directors will be held in due course after the New Notes and the New Ordinary Shares have been issued.

Words and expressions defined in the Explanatory Memorandum have the same meanings when used in this announcement. For further information on the Composition, creditors are referred to the Explanatory Memorandum.