Lovells, Slaughters bag roles on Icelandic banks’ recapitalisation

A group of UK and US firms has landed key roles advising on the $2.1bn (£1.28bn) recapitalisation of the Icelandic banking ­sector.

Lovells equity capital markets partner Richard Brown is leading a team advising the Icelandic ­government on a deal that will see it issue bonds to the three new banks created to replace the collapsed Kaupthing Bank, Landsbanki and Glitnir.

A team led by Slaughter and May partner Andrew McClean is advising the UK Treasury.

Bingham McCutchen is advising the bondholders with partner Tim Desieno leading on the matter. Morrison & Foerster New York partner Jim Tanenbaum is advising Landsbanki and Glitnir.

Mayer Brown finance partner Stephen Walsh is heading the team advising Banque Havilland on the restructuring of failed bank Kaupthing.

Last year (30 October 2008) The Lawyer reported on the collapse of the three Icelandic banks. Kaupthing instructed Allen & Overy partner Mark Sterling in the UK, while Landsbanki turned to Squire Sanders & Dempsey finance partner Andrew Knight.

Brown at Lovells said: “We’ve been working on this for around four months and we were instructed after we advised the Icelandic ­government last year.

“It’s been a very ­interesting deal to advise on. It’s complicated because we have to deal with so many different elements and ­different entities.”

A source close to the As part of the deal equity stakes in the newly created financial institutions will be offered to creditors of the failed banks as ­compensation for healthy assets rescued from those banks last year.

deal commented: “It has ­fascinating economic and political implications. It’s had a very far-reaching impact across the world.”

All the details of the deal are yet to be finalised, with arrangements for assets relating to Landsbanki still outstanding. The heavy ­liabilities to the UK
and Dutch governments make this element more complex.