Hogan Lovells Advises on First Successful Restructuring of Icelandic Investment Bank, Straumur-Burdaras Investment Bank hf
LONDON, 16 September 2010 - Hogan Lovells International LLP has acted as international counsel to Straumur-Burdaras Investment Bank on the €2.3 billion restructuring of creditor claims pursuant to an Icelandic court-approved composition agreement. Jonsson & Hall in Reykjavik acted as local Icelandic counsel to Straumur and both the London and New York offices of Bingham McCutchen LLP provided legal advice to the creditors.
The composition agreement involved the conversion of part of creditors' recognised claims against Straumur into shares, with the remainder being converted into bonds with a total value in excess of €1.26 billion. Further bonds with a value of €975 million were issued in respect of disputed, contingent and secured claims. The former creditors now hold the entire issued share capital of Straumur.
The Hogan Lovells team representing Straumur-Burdaras Investment Bank was led by Corporate partner, Richard Brown, together with Corporate partner Maegen Morrison, assisted by senior associate Louise Rooney and associate Emma Soar, all of the London office.
This complex and long-running transaction involved multijurisdictional as well as cross-disciplinary issues, with members of Hogan Lovells' Amsterdam and Dusseldorf offices also providing advice. Restructuring advice was provided by London-based Business Restructuring and Insolvency partner, Robin Spencer, supported by senior associate Oliver Jackson, and significant tax advice was provided by London Tax partner, Karen Hughes, supported by associate Lee Squires. The Hogan Lovells bonds specialists working on the transaction were led by Debt Capital Markets partner Andrew Carey and assisted by senior associate Jonathan Malim and associate Sema Kandemir, also all of the London office.
Commenting today, Richard Brown said:
"Hogan Lovells is pleased to have advised on the first successful composition of an Icelandic financial institution following the recent Icelandic economic and banking crisis. This composition will allow Straumur-Burdaras to conduct a careful and productive realisation of its assets and to maximise returns to its creditors."
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