Financial restructuring of Icelandic property operations completed and Landic Property hf seeks composition with creditors

- Financial restructuring of Icelandic property operations completed
- Vidar Thorkelsson appointed as CEO of Landic Property Island
- Parent company ceases operations and seeks composition with creditors

Landic Property hf. has completed the financial restructuring of the Icelandic
property operations together with NBI, New Kaupthing, Islandsbanki, Glitnir
Bank, Haf Funding and Byr. 

The restructuring and financing agreements with the banks strengthen and secure
the Icelandic property operations that operate under the name Landic Property
Island ehf. Landic Property Island is the largest property company in Iceland
and the portfolio consists of 120 properties totalling more than 400 thousand
squares meters of retail and office premises in Iceland. Landic Property Island
is now majority owned by Icelandic banks and financial institutions. Vidar
Thorkelsson has been appointed as CEO and Einar Thorsteinsson as CFO of the
company. The company´s total assets are valued at approximately ISK 90 billion. 

The operation of the parent company, Landic Property hf., has been ceased and
the board has requested authorization to seek composition with its creditors. 

Landic Property hf. was a Nordic property company that had a large property
portfolio in Iceland, Denmark and Sweden. The fall of the Icelandic banking
system, the depreciation of the Icelandic krona and decreasing property prices
in various markets had adverse affect on the company and the company has been
in a moratorium since 16 April 2009. At that time the company´s equity was
negative and a new board was elected, representing the company´s main
creditors. Landic Property hf. has for the past year been working on the
financial restructuring of the company in co-operation with its creditors.
During that process the company has been able to secure the Icelandic operation
and finalized the sale of its Danish and Finnish subsidiaries as a part of this
restructuring. 

Currently Landic Property hf.´s unpledged assets amount to around ISK 5 billion
and unsecured debt is estimated ISK 120 billion. The management and the board
of the company believe that the interests of unsecured creditors are best
served by entering a composition agreement with the creditors. Landic Property
hf.´s creditors, holding 76% of the company´s debt, support the board's
request for authorization to seek composition with creditors, that was filed at
the District Court of Reykjavík today. 

Vidar Thorkelsson, CEO of Landic Property: “It is positive that we have been
able to secure the Icelandic property operations, which has been one of the key
goals of the restructuring process. Landic Property Iceland has a distinctive
property portfolio and a solid operation. At the same time, the losses, that
creditors and share-holders of the parent company have suffered, are a major
disappointment. However, I believe that close co-operation with the creditors
and the hard work of Landic Property´s employees has resulted in highest
possible overall recovery, for secured and unsecured creditors.“ 


For further information please contact:
Landic Property hf.	
Vidar Thorkelsson, CEO	
Phone +354 575 9000			
E-mail: vth@landicproperty.is