Press release - 8 June 2009

Contacts: PricewaterhouseCoopers Luxembourg S.à r.l.
Mrs Emmanuelle Caruel-Henniaux

Mr Franz Fayot, attorney at law

kaupthing.administrators@kaupthing.lu

The Administrators and the Management of Kaupthing Bank Luxembourg S.A. are announcing the extension of the administration period in the perspective of re-opening the Bank as from mid July 2009.

The Luxembourg Tribunal d’arrondissement (District Court), sitting in commercial matters, ruled on the extension of the administration period which was to expire at midnight today, 8 June 2009. The Court granted a five week extension until 10 July 2009 after hearing the Bank’s court-appointed administrators (PricewaterhouseCoopers S.à r.l. represented by Mrs Emmanuelle Caruel-Henniaux, partner, and Mr Franz Fayot, attorney at law) (hereafter “the Administrators”).

After having received the approval last week from the interbank creditors on the new takeover offer submitted by the Rowland Family via a group company, Blackfish Capital, the approval from the Luxembourg Deposit Guarantee Scheme (the AGDL) to participate in the funding of the restructuring of the Bank and the approval from the Luxembourg Central Bank on the repayment schedule of the outstanding financing facility, this extension of the administration period must be seen as being the next positive step towards achieving the reopening of the Bank.

It will indeed enable the Administrators, the Management and the Investor to finalise the implementation of the restructuring plan with all concerned parties in order for the Bank to be fully operational again as from mid-July 2009. and for the Luxembourg State to get the EU Commission’s approval on the loan provided by the State to the Bank.

Until the lifting of the suspension of payment, all payments by the Bank are still deferred and the Bank may not act or take a decision without the Administrators’ approval, as this was already the case during the whole period from 9 October 2008 to today.
After having demonstrated considerable understanding during these difficult times, depositors can now look forward to having free access to their bank accounts as from mid July 2009.

Press release - 5 June 2009

Contacts: PricewaterhouseCoopers Luxembourg S.à r.l.
Mrs Emmanuelle Caruel-Henniaux

Mr Franz Fayot, attorney at law

kaupthing.administrators@kaupthing.lu

The Administrators and the Management of Kaupthing Bank Luxembourg S.A. are pleased to announce that the interbank creditors voted on and approved the updated restructuring plan on Friday, 5 June 2009.

Since the rejection of the first restructuring plan by the interbank creditors on 16 March 2009, the Administrators and the Management of Kaupthing Bank Luxembourg S.A. have considered other possible options and alternatives to restructure the Bank. A new proposal put forward by the Rowland Family via a group company, Blackfish Capital, was submitted to the interbank creditors’ vote on 5 June 2009.

The Rowland Family is already active in financial services through its investment management company, Blackfish Capital Management Limited (regulated by the Financial Services Authority). The Family considers the ownership of a bank to be a natural progression of their involvement within the financial arena and a further evolution of the
Blackfish Group. The aim is to operate a traditional bank that will offer a high quality, personalised private banking, wealth management and asset management service.

According to the terms of the judgment rendered by the Luxembourg Court of Appeal on 28 January 2009, the restructuring offer had to win (i) more than half the votes of the restructured interbank creditors, representing together (ii) more than half the liabilities represented by the restructured debt.

The interbank creditors have voted in favour of the new takeover offer submitted by Blackfish Capital. The restructuring offer was accepted by 23 of the 25 creditor banks. In terms of liabilities, the revised restructuring offer was accepted by a majority of 97.8 % of the total restructured debt.

By 5 June 2009, the Bank's Administrators also received the approval of the Luxembourg Deposit Guarantee Scheme (the AGDL) to participate in the funding of the restructuring of the Bank and the approval of the Luxembourg Central Bank to agree on the repayment schedule of the outstanding financing facility.

As part of the restructuring process of the Bank, the results of the vote will be submitted to the Luxembourg District Court in order to request that the administration period be extended by a few weeks. Among other things, this new extension will enable the implementation of the approved restructuring plan.

Press release - 2 April 2009

Contacts: PricewaterhouseCoopers Luxembourg S.à r.l.
Mrs Emmanuelle Caruel-Henniaux

Mr Franz Fayot, attorney at law

kaupthing.administrators@kaupthing.lu

The Administrators and the Management of Kaupthing Bank Luxembourg S.A. are announcing that the suspension of payments’ period has been extended

The Tribunal d’arrondissement de et à Luxembourg (Luxembourg District Court), sitting in commercial matters, ruled on the extension of the suspension of payments’ period which was to expire at midnight on 8 April 2009. The District Court granted a two-month extension after hearing the Bank’s court-appointed administrators (PricewaterhouseCoopers S.à r.l. represented by Mrs Emmanuelle Caruel-Henniaux partner, and Mr Franz Fayot, attorney at law) (hereafter “the Administrators”).

This extension of the suspension of payments’ period does not mean that the Bank will resume its operations as usual. As a result, until 8 June 2009, all payments by the Bank are still deferred temporarily and the Bank may not act or make a decision unless the Administrators agree, as this was already the case as from 9 October 2008.

Had the suspension of payments’ period not been extended, the decision would have been final: the Tribunal d’arrondissement de et à Luxembourg, at the request of the Commission de Surveillance du Secteur Financier (the Luxembourg financial regulator) or at the request
of the Public Prosecutor, would have had no choice but to wind up the Bank, since the interbank creditors rejected the restructuring plan submitted to their vote by the Administrators in mid-March.

This extension of the suspension of payments’ period bodes well for the prospects of a takeover for the Bank and the unfreezing of the bank accounts. The extension will enable the Bank’s Administrators and the Management to continue to work together towards this goal.

In the view of the difficulties resulting from the accounts being frozen, the understanding, patience and support that have been granted by the depositors to the Bank’s Administrators and Management, will undoubtedly enable the latter to get on with the tasks that lie ahead in the weeks to come. 

Press release - 16 March 2009

Contacts : PricewaterhouseCoopers Luxembourg S.à r.l.
Mrs Emmanuelle Caruel-Henniaux

Me Franz Fayot, Attorney at law

kaupthing.administrators@kaupthing.lu


The Administrators and the Management of Kaupthing Bank Luxembourg S.A. announced that the interbank creditors rejected the restructuring plan that they were asked to vote on this Monday, March 16th, 2009.

Since October 9th, 2008 the Bank has continued to operate, within the framework of the administrative receivership status granted by the Tribunal d’arrondissement de Luxembourg, sitting in commercial matters. The Board of Directors of Kaupthing Bank Luxembourg SA had applied for this status, which also includes monitoring of the Bank’s management by administrators. The Court appointed PricewaterhouseCoopers Luxembourg, represented by Mrs Emmanuelle Caruel-Henniaux, partner, and Maître Franz Fayot, attorney at law, to act as the Bank's administrators. This appointment is limited to a maximum term of 6 months and ends at the latest on April 8th, 2009.

A memorandum of understanding was entered into last December between the Luxembourg government and a consortium of investors headed by a Libyan sovereign fund. Under the memorandum of understanding, the activities of Kaupthing Bank Luxembourg S.A. would be taken over by the consortium.

This memorandum was subject to several conditions, including the approval of the interbank creditors. A vote took place this Monday, March 16th and the interbank creditors rejected the restructuring offer. According to the terms of the judgement rendered by the Luxembourg Court of Appeal on January 28th, 2009, the restructuring offer had to win (i) more than half the votes of the restructured interbank creditors, representing together (ii) more than half the liabilities represented by the restructured debt.

The restructuring offer was rejected by 17 of the 25 creditor banks. In terms of liabilities, the restructuring offer was rejected by a majority of 53% of the total restructured debt.

Discussions are ongoing with the parties involved in this restructuring proposal and with the relevant public authorities in order to consider other possible options and alternatives by April 8th, 2009, which is the deadline for restructuring the Bank. At present, all options receive adequate consideration by the administrators, who will communicate the outcomes of the discussions in due time.

Press Release - Reprise de la clientèle de la succursale belge de Kaupthing Bank Luxembourg S.A. en
deux phases

21.01.2009

Kaupthing Bank Luxembourg S.A. (« Kaupthing»), en présence de ses
administrateurs judiciaires, et le groupe Crédit Agricole ont signé le 15 janvier 2009 une
convention (la « Convention ») ayant pour objet la reprise en deux phases de la clientèle de
la succursale belge de Kaupthing. Cette transaction est l’aboutissement des discussions
menées depuis plusieurs semaines entre la direction de Kaupthing, ses administrateurs
judiciaires et diverses parties intéressées.

Dans une première phase, il est prévu que Crédit Agricole reprenne les clients
« private banking » de la succursale belge de Kaupthing, une fois que toutes les conditions
suspensives contenues dans la Convention ont été remplies. Cette première phase doit
permettre à ces clients private banking d’accéder à leurs avoirs bancaires constitués de
valeurs mobilières, à condition de ne pas être débiteur à l’égard de Kaupthing. Ils devront
malgré tout continuer à faire preuve de patience dans la mesure où la rapidité du transfert de
leur portefeuille-titres dépend d’acteurs externes à Crédit Agricole et à Kaupthing,
notamment les banques dépositaires qui détiennent aujourd’hui ces titres. Les liquidités des
clients private banking se trouvant sur un compte bancaire auprès de la succursale belge de
Kaupthing ne seront par contre pas immédiatement disponibles. En effet, ces avoirs ne
pourront être débloqués qu’une fois la mesure de sursis de paiement levée.

Dans une deuxième phase, et une fois l’ensemble des conditions suspensives prévues
dans la Convention levées, Keytrade Bank, une filiale de Crédit Agricole, reprendra les
clients en ligne qualifiés de clients « Kaupthing Edge » de la succursale belge de Kaupthing.
L’activité « Kaupthing Edge » consiste en des comptes d’épargne, des comptes à vue et des
comptes à terme accessibles uniquement via Internet. Ainsi, ce n’est qu’en cas
d’aboutissement de la restructuration de Kaupthing et de sortie du régime de sursis de
paiement que le transfert de la clientèle « Kaupthing Edge » pourra être fait et que celle-ci
pourra à nouveau accéder à ses liquidités.

Press Release - Continuity of the activities of Kaupthing Bank Luxembourg S.A.

23 December 2008

The government of Luxembourg and a consortium of investors led by a Libyan sovereign wealth fund have entered into a memorandum of understanding aiming to sustain the continuity of the activities of Kaupthing Bank Luxembourg S.A.

This memorandum of understanding foresees that the depositors, whose cash deposits are frozen since 9 October 2008, will recover their entire savings at the end of the transaction.

This memorandum of understanding, which still must be signed by the Belgian government, is subject to the realisation of several conditions precedent, the most important being the following:

- the restructuring of the interbank financing of Kaupthing Bank Luxembourg S.A., which requires the agreement of the current interbank creditors;
- the approval by Kaupthing Bank hf, mother company of Kaupthing Bank Luxembourg S.A., to dispose of its shares.

Once all the conditions precedent are met, the parties expect that a closing of the transaction could occur during the first quarter of 2009. This will allow the depositors to dispose again freely of their currently blocked cash deposits.

This announcement constitutes a first positive step resulting from the work conducted since Thursday 9 October 2008, date on which the board of directors of the bank had requested and obtained from the Tribunal d’Arrondissement de Luxembourg, sitting in commercial matters, its admission to the regime of suspension of payments. Such regime entails a legal control of the management of the bank’s assets by Administrators: the company PricewaterhouseCoopers S.à r.l. represented by Mrs Emmanuelle Caruel-Henniaux, partner, and Mr Franz Fayot, lawyer.

Press Release - Luxembourg, 22 December 2008

Reply to the Kaupthing Bank Luxembourg S.A. clients who wrote to the government

22 December 2008

Please find below the letter in reply to the many Kaupthing Bank Luxembourg S.A. clients who wrote to the government using the contact form available on the government’s website.

“Dear Sir or Madam,

Kaupthing Bank Luxembourg went into administration on 9 October 2008. Since then, the Luxembourg government has been actively involved in searching for a solution which would enable all depositors to recover their savings. As part of these efforts, the Luxembourg government has been working closely with the administrators appointed by the Luxembourg District Court and with the Belgian federal government.

A major step was taken on Friday, 19 December 2008 when a declaration of intent was signed by the Luxembourg government and a consortium of investors from several Arab countries. Under the declaration of intent, those investors would buy up Kaupthing Bank Luxembourg and enable the bank to resume its operations. The bank would receive a loan under the terms of the agreement.

However, this declaration of intent is only the first step in a longer process which should result in the bank reopening its accounts. To restructure the bank’s financing, other agreements still need to be signed, including with the Bank’s interbank creditors. The details of these agreements will be worked out in early 2009. Since this process involves the cooperation of many participants and compliance with the relevant parties’ internal procedures, those steps will necessarily require a certain length of time before they can be completed.

The parties expect those various agreements to be implemented in the first quarter of 2009. As a result, they expect the accounts to be reopened around that time.

The guarantee scheme operated by the Association pour la garantie des dépôts Luxembourg (AGDL) started compensating Kaupthing Bank Luxembourg depositors in early December. Depositors will continue to be compensated until the bank’s accounts are reopened. For further information and to download the related forms, please visit www.agdl.lu.

Yours faithfully,
News and press department”

Press Release - Luxembourg, 20 December 2008

Statement by the Finance Ministry on December 20, 2008

Recent Luxembourg developments affecting Dexia, Fortis and Kaupthing

On Saturday, 20 December 2008, Luxembourg Treasury and Budget Minister Luc Frieden briefed the Parliamentary Finance Committee on the latest developments affecting Dexia, Fortis and Kaupthing. (…). As far as Kaupthing is concerned, Luxembourg Treasury and Budget Minister Luc Frieden informed the Finance. Committee members that he signed a declaration of intent in Paris on Friday, 19 December. Under the declaration of intent, Kaupthing Bank Luxembourg S.A. would be taken over by a consortium of investors from several Arab countries. The takeover of the bank will also need to be approved by the Belgian government and by creditor banks. The Luxembourg government, together with the Belgian government and creditor banks, will grant credit to the Bank to ensure that it can continue to operate and reimburse depositors in full.

Press Release - Luxembourg, 16th November 2008

Contact : PricewaterhouseCoopers Luxembourg S.à r.l.
               Mme Emmanuelle Caruel-Henniaux
               Me Franz Fayot, avocat à la cour 

              kaupthing.administrators@kaupthing.lu 

The administrators of Kaupthing Bank Luxembourg S.A have been working around the clock for a month. They are fully aware of the difficulties faced by depositors (including those who deposited money with the bank’s Belgian and Swiss branches) and would like to present a brief outline of the work conducted so far.

On Thursday, 9 October 2008, the Bank’s Board of Directors applied for suspension of payments status with the Luxembourg District Court sitting in commercial matters. The Bank was granted this status with monitoring of the Bank’s management by the administrators. The Court appointed PriceWaterhouseCoopers Luxembourg - represented by Mrs Emmanuelle Caruel-Henniaux - and Mr Franz Fayot, Attorney at law, to act as the Bank's administrators.

Under the Luxembourg Financial Sector Act, suspension of payment is not equivalent to bankruptcy or liquidation. When a bank is granted this status, all payments are deferred temporarily and the Bank may not act or make a decision unless the administrators agree.

As soon as they were appointed, the administrators and their teams started working closely with the Bank's management and employees. The administrators’ tasks included preparing a statement of the Bank’s assets and liabilities and approving transactions and Management’s decisions. The purpose of this work is to protect the Bank's assets, to make sure customer deposits are safe, to give all creditors equivalent treatment and to make sure that the Bank can be taken over.

The administrators have also been in close contact with the relevant authorities.

Monitoring of the Bank’s operations

Among other things, the Bank has been unable to reimburse its customers’ cash deposits since it was granted suspension of payment status on 9 October 2008. Also, the Bank is not authorised to make any other payments unless the administrators give their prior consent. As a result, the administrators signed off on a limited number of transactions in the interest of the Bank's creditors and customers.

Some of those transactions were the subject of judgements by the Luxembourg District Court sitting in commercial matters. These judgements are dated 29 October 2008 and relate to the suspension of payment status of the Bank and that of another Luxembourg-based Icelandic bank.

The administrators apply the solutions proposed by the judgements as they manage the suspension of payment. These solutions include the following points:

• The income made up of securities (such as interest and dividends) owned by the Bank’s customers and the related cash are not included in the Bank's assets.
• Those transfer orders and share buy orders which have not yet been closed as of the receivership date must be cancelled. The related amounts must be credited to the relevant customers’ accounts.
• If certain requirements are met, securities, which are not subject to a pledge, guarantee or lien, may be transferred.

For further information, one may refer to the FAQ document posted on the Bank’s website (www.kaupthing.lu, www.kaupthing.be and www.kaupthing.ch). The document was updated recently to reflect the solutions ruled on by the Court.

Takeover efforts

The administrators would like to come to a solution which will enable the Bank to remain in business. This would have the advantage of putting an end to the suspension of payment status. To achieve this, the administrators, together with the Bank’s Management, have facilitated contacts and discussions with potential buyers about the terms of a potential takeover with them.

Using a Data Room made available to them by the Bank, potential buyers can have access to the information they need to confirm their interest and communicate their offers.

Talks with potential buyers are still ongoing. Making sure the Bank and /or its Belgian and Swiss branches can be taken over is a key priority for the administrators and for the Bank's Management. However, for the time being, one is unable to predict whether and when the takeover efforts will be successful.


The administrators of Kaupthing Bank Luxembourg S.A.,

PricewaterhouseCoopers Luxembourg sarl	Me Franz Fayot
Represented by Emmanuelle Caruel-Henniaux	Avocat à la cour

 

Press Release - Luxembourg, 12th October 2008

The joint administrators of Kaupthing Bank Luxembourg S.A. (the “Bank”) have been appointed by judgment of the Tribunal d’arrondissement de Luxembourg (District Court) sitting in commercial matters on Thursday 9th October 2008.

The judgment entails suspension of payments in favour of the Bank and requires the approval of the administrators for all acts and decisions of the Bank. The management of the Bank remains in place.

The role of the administrators is to control the management of the assets of the Bank and especially to protect the Bank’s assets, safeguard the clients’ deposits and ensure equal treatment of creditors.

The administrators have immediately started to assume their functions and have, since their appointment, been working with the management of the Bank to assess the situation of the Bank.

E-mails addressed to the administrators at kaupthing.administrators@kaupthing.lu have been received and are under review of the Bank and the administrators. Questions addressed by e-mail or by other means will not be answered individually if the questions therein are covered by the FAQ document posted on www.kaupthing.lu.

Specific queries falling outside the scope of the FAQ document will be examined and addressed.

The Administrators

PricewaterhouseCoopers S.àr.l. represented by Mrs Emmanuelle Caruel-Henniaux and Me Franz Fayot