Epiq assists Iceland’s largest banks after historic collapse

The challenge

Iceland’s three largest banks—Glitnir, Kaupthing and Landsbanki—failed in 2008, sending the Icelandic economy into disarray. Before the dust had settled, Epiq was brought in to advise and assist in crafting and implementing consistent procedures that would govern the filing, transfer and reconciliation of claims asserted by beneficial owners of “program securities” issued by the banks.

The solution

Epiq successfully:

  • Developed, along with the global depositories, Euroclear and Clearstream, the “blocking” procedures used to facilitate the filing of claims by beneficial owners of program securities
  • Served as primary intermediary for the Icelandic banks in interactions with the global depositories, banks, brokers and beneficial owners
  • Drafted instructions and notices that were distributed via the global depository noticing systems
  • Crafted detailed responses to frequently asked questions
  • Created and implemented the claims transfer process in close consultation with the Winding-Up Board/Committee
  • Assisted in the reconciliation of program securities claims

The results

Through understanding of claims management, transfer procedures, global public securities issues and the inner workings of the global depositories, Epiq succeeded in establishing a clear, comprehensive claims filing and transfer process for each of the Icelandic banks.

By the numbers

3 Major multinational banks in moratorium

25K Beneficial owner claims filed against Icelandic banks

50.5K+ Claims asserted against the Icelandic banks

18.7K+ Claim transfer requests submitted to Epiq for processing

35.5K Notices issued

Corporate Restructuring client stories