•The Board of Directors of Atorka Group announced today that the company will file for a composition settlement at a district court in Iceland. •Under the composition‘s proposal all creditors will convert their claims into a bond and common equity in the company. •Holders of over 65% of claims against the company have recommended the company's file for a composition settlement. •The main objective of the financial restructuring of Atorka is to safeguard value, provide continuity in the operations of the company and to give the company ample time and means to support its investments and holdings going forward. •Following the approval of the composition settlement the Icelandic banks and pension funds will become the largest shareholders of Atorka. •After the financial restructuring Atorka will have a strong balance sheet with an equity ratio of around 80% going forward. •Atorka does not intend to dispose of main assets in the near term as the company will continue to be a leading shareholder and to support its main investments over the next few years. Thorsteinn Vilhelmsson, Chairman of the Board of Directors, Atorka Group hf.: “The composition settlement marks an important milestone in the financial restructuring of Atorka Group. From the viewpoint of the Board of Directors it is unquestionable that the composition settlement will strengthen the financial capacity of Atorka as the company will have an equity ratio of 80% going forward. Furthermore, the Board emphasis the important consensus amongst creditors and other stakeholders that Atorka will not divest its main holdings for the next few years and will continue to provide support to its main strategic holdings.”