Arion Bank hf. - Other information disclosed according to the rules of the Exchange

Further impairments not expected after United Silicon hf. files for bankruptcy

The Board of Directors of United Silicon hf. has today requested that the company file for bankruptcy. The company has been under a moratorium on payments since 14 August 2017. In Arion Bank’s 9M 2017 financial statement, impairments of ISK 4.8 billion were recognized in respect of loans, receivables and other assets relating to United Silicon, including all of the Bank’s shareholding in the company.

The company’s bankruptcy has been anticipated for some time and this eventuality was provided for in the impairments recognized in the Bank’s 9M financial results presented in November. The bankruptcy of the company will therefore not result in further impairments at Arion Bank. Arion Bank will ask the liquidators of the bankruptcy to foreclose on its collateral in the company’s assets. Arion Bank, the largest creditor of United Silicon, is the only party with first lien on these assets. 

For further information please contact Haraldur Gudni Eidsson of Arion Bank's Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444 7108.