On May 15th 2013 Eyrir Invest reported an asset sale to Nasdaq OMX Iceland. That asset sale was subject to compulsory notification. The purpose was to strengthen Eyrir‘s financial position and increase flexibility in the company‘s operations. Furthermore Eyrir made a notification that the company intended to prepay financial obligations due within the next two years, likewise Eyrir announced that it would liquidate the company‘s bonds, class EYRI 11 1, in accordance to the terms of the bonds and subsequently delist the bonds.
Eyrir Invest has considerable amounts of funds blocked at Glitnir and its subsidiary Haf-funding. Eyrir Invest has reached an agreement with Haf-funding to prepay in full debt towards Haf-funding and parallel release blocked funds. The loan owed to Haf-funding originates in 2007 and its final maturity date is in December 2013. Interest on the loan has been duly paid and the majority of the original principal is already repaid. The loan is denominated in euros and therefore the prepayment needs a formal approval of the Central Bank of Iceland, as the Central Bank grants exemptions from the strict capital controls that are in force in Iceland. On May 16th 2013 Eyrir Invest sent an application to the Central Bank, requesting a waiver to be able to liquidate the aforesaid loan as Eyrir and the lender have agreed upon. That waiver has not yet been granted.
Eyrir still plans to liquidate the bond class EYRI 11 1 as per its terms and delist the bonds from the stock exchange afterwards.
Reykjavík, 23 August 2013
For further information, please contact;
Arni Oddur Thordarson, CEO
Tel: +354-525-0200
