IL Fund Bondholders Receive Key Updates on Settlement Process
IL Fund's Progress in Winding Down Operations
The IL Fund has made strides in its winding-up process since 2020, working diligently towards a complete dissolution. A critical proposal for the settlement of HFF bonds was presented and gained the majority support from bondholders earlier this year. This agreement ensures that all bondholders are bound to mutually beneficial terms for the exchange of HFF bonds and various other assets. As a result, approximately 97% of the fund’s total debt has been successfully addressed.
Bondholder Communique: Settlement Details
Following the majority approval, bondholders holding other liabilities have been informed that a similar exchange offer would be forthcoming. The outstanding liabilities largely comprise one category of Home Bonds (Húsnæðisbréf) and four classes of Housing Bonds (Húsbréf), which exist in both electronic and paper formats. A recent bond exchange offer has now concluded, inviting Home Bond holders to participate in an exchange for government bonds. The remaining Home Bonds are anticipated to be transferred to the Treasury, which will take on the related obligations.
Implementation of Housing Bond Call
In an additional move, the IL Fund executed a Housing Bond call, which involved drawing all outstanding Housing Bonds. This action is sanctioned under the Housing Act No. 44/1998, allowing borrowers to make supplementary payments on their mortgages before the final maturity. The fund has seen substantial prepayments on its loans, with no additional drawings taking place since 2020. It has been announced that home bondholders can start collecting their payments from the Financial Management Authority beginning on a specified date.
Continuation of Winding-Up Procedures
The progression of these initiatives indicates that the winding-up process of the IL Fund is nearly complete. Remaining settlement issues are expected to be resolved within the next few weeks, paving the way for the finalization of the fund's dissolution. As per stock exchange regulations, issuers of publicly listed bonds are required to disclose their financial standings publicly. However, as all liabilities associated with the IL Fund have now been settled, no additional financial disclosures will be forthcoming on the stock exchange.
Looking Ahead: IL Fund’s Future
The end of the winding-up process represents a significant milestone for the IL Fund and its bondholders. While the completion of all obligations is within reach, the fund will remain committed to transparency throughout this final stage. As matters are concluded, the expectation for further financial engagement through the stock exchange will diminish.
Frequently Asked Questions
What is the current status of the IL Fund's winding-up process?
The IL Fund is in its final stages of winding up, with most liabilities addressed through recent bondholder settlements.
How much of the fund’s debt has been resolved?
Approximately 97% of the fund’s total debt has been successfully addressed through bondholder agreements.
What is the fate of the remaining Home Bonds?
Remaining Home Bonds are expected to be transferred to the Treasury, which will assume the obligations linked to them.
Are there any further disclosures expected from the IL Fund?
As all liabilities have been settled, no further financial disclosures are anticipated on the stock exchange.
When can home bondholders expect to receive their payments?
Home bondholders may begin collecting payments from the Financial Management Authority starting on a specified date.
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