- The District Court of Reykjavík grants Hf. Eimskipafélag Íslands authorisation to seek composition

Yesterday morning, Hf. Eimskipafélag Íslands submitted a request to the
District Court of Reykjavík for authorisation to seek composition. Plans to
such effect were presented at the company's Annual General Meeting on 30 June
2009. 
 
The District Court of Reykjavík has agreed to authorise the company to seek
composition in accordance with the company's motion. Gardar Gardarsson, Supreme
Court Attorney, was appointed supervisor of the company's composition efforts. 
 
The motion for composition proceedings is as follows:

“Creditors holding contractual claims (“creditors”) are invited to transfer
their claims against Eimskip to L1003 ehf. (which will be changed to
Eimskipafélag Íslands ehf.), State Reg. No. 690409-0460, (“New Eimskip”). This
offer is equivalent to the payment of 11.9% of their claims. 
 
1. Eimskip will deliver 54.1% of the shares in New Eimskip to creditors. This
   is equivalent to the payment of 11.9% of their claims. The delivery will take
   place as soon as possible and not later than within 30 days from the date of
   entry into effect of the composition agreement. 

2. No interest will be paid on the claims of creditors from the date of
   entry into effect of this motion to the date that shares in New Eimskip are
   transferred to creditors. 

3. No guarantees for payment pursuant to the above are provided.