Two businesses which had major investments in Icelandair Group have had their investments seized – leaving Islandsbanki Bank holding a 47 percent stake in Icelandair Group.
In a press release today, the Bank stresses that Icelandair Group does not bear responsibility for the collapse of two shareholding companies and that business will continue as usual. Islandsbanki claims to be relatively happy with the situation.
The Bank’s statement reads: “Icelandair Group’s operations have gone better than expected in the first quarter. Over recent months, the company has been working on a financial reorganisation in collaboration with Islandsbanki. The project is going well and the Bank wants to continue its co-operation with the current Icelandair management,”
Icelandair Group is a listed company on the Iceland Stock Exchange and will continue to be traded on the Nasdaq OMX exchange in Reykjavik. Islandsbanki intends to sell its stake on the open market at a time best suited to all stakeholders.
The Financial Supervisory Authority (FME) in Reykjavik allowed Islandsbanki temporary permission to hold its 47 percent stake in Icelandair Group; but the Bank must reduce its holdings to 30 percent or less as soon as possible.
Mattur Investment ehf. and Naust ehf. are the names of the two companies affected. Both used loans from Islandsbanki to buy investments, making it relatively simple for the Bank to seize those investments in the event of the companies’ default.
Icelandair Group is an Iceland-based travel company made up of 12 businesses, including Icelandair, Travel Service and Bluebird Cargo.
Further information on the company can be found at www.icelandairgroup.com