Last night the Directors of Landsbanki Guernsey Limited made an application to the Royal Court for the Court to appoint an administrator under Guernsey’s company law. The Court has appointed Mr Rick Garrard of Deloitte and Touche LLP with a view to achieving the survival of the bank, and the whole or any part of its undertaking, as a going concern. The administration is on a temporary basis until 6 January 2009 or earlier order of the Court.
The application by the bank’s Directors follows the deepening problems of the Icelandic economy and, in particular, of the Icelandic banking system. Pending clarification of uncertainty around liquidity and the ultimate recoverability of certain assets, the Directors have sought to ensure that all depositors of Landsbanki Guernsey Limited are treated equally and fairly. It is anticipated that the administration will help to ensure that all depositors in the bank, including those with deposits which can be withdrawn immediately and those who are locked into fixed term deposits, have an equal opportunity to have their funds returned.
The decision by the Directors was made after close consultation with the Guernsey Financial Services Commission, which supported the appointment of the administrator as being in the best interests of depositors.
Further information can be obtained from the bank’s Customer Service Department.