Agreement reached on settling Thorsteinn M. Jónsson's debts with Arion Bank

Arion Bank has made an agreement with Thorsteinn M. Jónsson and companies associated with him on the settlement of debts to the Bank. These companies include Vífilfell hf. which will come under new ownership. According to the agreement Arion Bank should fully recover its debts.

The agreement is based on the sale by the holding companies owned by Mr Jónsson, Sólstafir and Neanu of all share capital in Vífilfell. The new owner of Vífilfell is the Spanish beverage company Cobega. The purchase price is confidential but all proceeds from the sale will be used to pay down the debts of Mr Jónsson’s holding companies to Arion Bank. The purchase agreement has already been signed but certain conditions specified in the agreement still have to be met. This is expected to be completed in February.

Arion Bank will also receive the expected sale proceeds and other payments relating to Vífilfell’s share in the Dutch beverage producer Refresco. Mr Jónsson will remain on the board of the company.

Before the financial restructuring of the companies the total debts of Sólstafir and Neanu to Arion Bank amounted to ISK 6.4 billion and Vífilfell's total debts to the Bank amounted to ISK 4.5 billion. This agreement represents the final settlement of Sólstafir and Neanu’s debts to Arion Bank. Vífilfell will still have total debts of ISK 2 billion, ISK 1.4 billion of which is to Arion Bank.

Mr Jónsson also has a share in the investment company Materia Investments and has personally guaranteed ISK 240 million of the company’s debts to Arion Bank. These guarantees will be settled with this agreement.