Glitnir Bank Files US$2bn Legal Claim Against Jón Ásgeir Jóhannesson and Other Former Directors and Shareholders, Allegi

    
    The Defendants in the case are:
    - Jón Ásgeir Jóhannesson, former Executive Chairman of Baugur;
      former Chairman of FL Group; principal shareholder in both companies
      and, through them, controlled around 39% of shares in Glitnir Bank
    - Thorsteinn Jonsson, former Chairman of the Board, Glitnir
      Bank; also former vice-Chairman of FL Group
    - Jón Sigursson, former Director of Glitnir Bank; also former
      Deputy CEO of FL Group
    - Lárus Welding, former CEO and Chairman of the Risk
      Committee, Glitnir Bank
    - Pálmi Haraldsson, former Director, Glitnir Bank
    - Hannes Smarason, former CEO of FL Group
    - Ingibjörg Stefanía Pálmadóttir, wife of Jón Ásgeir
      Jóhannesson; former Director, Baugur
    - PwC, auditor to Glitnir Bank; performed reviews and issued
      letters on which investors relied in connection with the September
      2007 New York bond offering

Freezing Orders

Separate to the New York litigation, the Winding-Up Board of Glitnir Bank secured on May 11, 2010 an order from the High Court in London, freezing the worldwide assets of Jón Ásgeir Jóhannesson. Freezing orders have also been applied for in the Icelandic court against Jóhannesson, Welding and Pálmi Haraldsson, former Director, Glitnir Bank.

Glitnir Bank

Glitnir Bank, a public company, was until its collapse a full-service bank, providing corporate banking, investment banking, capital markets, investment management and retail banking services. It had offices in ten countries, including Manhattan, and its market capitalisation once stood at more than EUR4bn.

Hit by the global financial crisis in 2007-08, and financially weakened by the fraudulent transactions of the individual Defendants, Glitnir declared bankruptcy in October 2008. It is now the subject of a court-supervised moratorium proceeding in Iceland, under the supervision of Iceland's Financial Supervisory Authority and a Resolution Committee. An Icelandic court has appointed a Winding-Up Board, headed by Steinunn Gubjartsdóttir, to supervise the liquidation of the Bank's assets. The Winding-Up Board and Resolution Committee have authorised this litigation.

Glitnir's Legal Representation

Glitnir is represented in the New York action by Michael Campion Miller, Robbin Itkin, Evan Glassman and Katherine Piper from Steptoe & Johnson, LLP. In London, Glitnir is represented by Slaughter and May.

    
    For more information, please contact:
    Rory Godson, Powerscourt (London)
    Tel: +44-20-7250-1446
    Rory.godson@powerscourtmedia.com
    Conal Walsh, Powerscourt (London)
    Tel: +44-20-7250-1446
    Conal.walsh@powerscourtmedia.com
    Lisa Kavanagh, Powerscourt (London)
    Tel: +44-20-7250-1446
    Lisa.kavanagh@powerscourtmedia.com
    John Dudzinsky, APCO Worldwide (New York)
    Tel: +1-212-300-1817
    jdudzinsky@apcoworldwide.com

For more information, please contact: Rory Godson, Powerscourt (London), Tel: +44-20-7250-1446, Rory.godson@powerscourtmedia.com ; Conal Walsh, Powerscourt (London), Tel: +44-20-7250-1446, Conal.walsh@powerscourtmedia.com ; Lisa Kavanagh, Powerscourt (London), Tel: +44-20-7250-1446, Lisa.kavanagh@powerscourtmedia.com ; John Dudzinsky, APCO Worldwide (New York), Tel: +1-212-300-1817, jdudzinsky@apcoworldwide.com