Hf. Eimskipafélag Íslands - Notice to convene extr.general meeting

Proposals of the Board of Hf. Eimskipafélag Íslands for the shareholder´s meeting

Proposal of the Board of Hf. Eimskipafélag Íslands
to
change the name of the company

The shareholders' meeting of Hf. Eimskipafélag Íslands, held on 8 September,
approves the proposal to change the company's name to A1988 hf. 
Article 1 of the company's Articles of Association is to be amended and will
read as follows: 

“The Company is a Public Limited Liability Company and its name is A1988 hf.”



Proposal of the Board of Hf. Eimskipafélag Íslands
to
approve agreements relating to the company's financial restructuring




The shareholders' meeting of Hf. Eimskipafélag Íslands, held on 8 September
2009, confirms the Board's authorisation to assign all the company's assets
relating to vessel operation to Eimskip Ísland ehf. and, in so doing, increase
the share capital of that company and receive in return shares in Eimskip
Ísland ehf. Furthermore, the meeting confirms the Board's authorisation to
assign the above shares in Eimskip Ísland ehf., together with all other assets
belonging to the company, with the exception of the 51% shareholding in Eimskip
Tango ehf., to the company L1003 ehf. in exchange for the delivery of shares in
L1003 ehf. 




Memorandum:

The above proposal is put forward as a part of the company's financial
restructuring following the approval of the company's composition agreement
which was confirmed on 28 August 2009 by the District Court of Reykjavík.
Agreements reached in connection with the company's composition bill assume
that the company's vessel operations will be transferred to a new company, i.e.
L1003 ehf. (which will later receive the name Eimskipafélag Íslands ehf.). 

According to the composition agreement, creditors will receive shares in L1003
ehf. in payment for their claims on the company. 

The arrangements discussed here are explained in greater detail in a report to
the creditors which was attached to the company's composition agreement. This
proposal confirms the Board's authorisation to finalise the agreements set
forth in the company's composition agreement.