Published: 2011-02-06 22:37:20 CET
Amagerbanken A/S
Company Announcement

Company Announcement no. 1/2011

6 February 2011

  • Additional write-downs in the fourth quarter of 2010 implies that the equity capital of the bank is lost
  • The bank and Finansiel Stabilitet A/S has signed an agreement on winding-up, pursuant to which all assets and certain liabilities of the bank are transferred to a new company under Finansiel Stabilitet A/S by the name Amagerbanken af 2011 A/S.
  • The continuing bank will be open to customers from Monday morning.
  • Finansiel Stabilitet A/S has provided liquidity to the continuing bank.
  • Amagerbanken Aktieselskab will file a bankruptcy petition.
  • Trading in shares and bonds issued by Amagerbanken, Aktieselskab on NASDAQ OMX Copenhagen to be suspended.
  • The employees continue in the continuing bank.
  • The board of directors and Steen Hove constitute the board of directors and management in the continuing bank.
  • Information on press briefing and shareholders’ meeting.


Increased write-downs

At a board meeting in the evening on 4 February 2011 and on basis of a thorough review of the bank’s commitments initiated after the extraordinary general meeting on 10 November 2010, the board of directors has unanimously resolved to follow a recommendation from the management of the bank and further write-downs in the amount of MDKK 3,144 in the fourth quarter of 2010. The amount contains the write-down of MDKK 381 announced in company announcement no. 60-2010 of 25 November 2010.

The calculation on the write-downs has been made on basis of a going concern assessment. A more forced winding-up of the bank’s commitments and exposures is deemed to imply a significantly larger write-down.

The equity capital of the bank, which in the interim financial report for the first to third quarter of 2010 was estimated to be MDKK 2,441 as of 30 September 2010, is now negative with MDKK 654 as of 1 January 2011.

The abovementioned review has been made by the board of directors and management over a period of time and is based on the 169 largest commitments that in terms of value represent 80 per cent of all commitments and approximately 95 per cent of all business commitments. For the purpose of the review, the bank has obtained additional external valuations of a number the properties and property development projects to which the bank has granted loans.

All commitments exceeding MDKK 15 have been reviewed, and sample reviews of commitments below MDKK 15 have been conducted by KPMG Statsautoriseret Revisionspartnerselskab.

Solvency requirements not met and winding-up of the bank

As a consequence of the ascertained need for additional write-downs, on late Friday, 4 February 2011, the bank notified the Danish Financial Supervisory Authority (“FSA”) that the bank did not meet the solvency requirements. Later the same evening, the bank received an order from the FSA stating that the solvency requirements must be met not later than today at 7 p.m.

Continuous efforts have been made to obtain new financing for the bank or find other solutions, including a sale of the bank or merger with other financial institutions, in order to continue the activities of the bank. These efforts, which have continued until today, have not been successful.

The activities of Amagerbanken have accordingly been wound up in accordance with the regulation of 1 October 2010 on the winding-up of distressed banks, whereby all assets and certain liabilities as of this date have been transferred to a new company, Amagerbanken af 2011 A/S that is 100 per cent owned by Finansiel Stabilitet A/S. The agreement with Finansiel Stabilitet A/S is mentioned below.

Filing of petition in bankruptcy, resignation of the board of directors and management and suspension of trade on NASDAQ OMX Copenhagen

As a consequence of the above, the bank has today decided to file a petition in bankruptcy with the bankruptcy court. The current board of directors and management of the bank will resign, as the appointed bankruptcy trustee will act as management in the company. In order for the bank to maintain its banking license after the bankruptcy the bank has applied for and obtained an extension of the deadline for meeting the solvency requirements to 6 March 2011.

The bank has furthermore requested NASDAQ OMX Copenhagen to suspend trading with shares and bonds issued by Amagerbanken, Aktieselskab, and admitted to trading on NASDAQ OMX Copenhagen, which includes securities traded under the following ISIN codes:




AMAG DK0060037109




AMBK KAP15 DK0030196241
AMBK12 DK0003452886
AMBK5 13 DK0030259429
AMBK4 13 DK0030259346
AMBK3 13 DK0030259502
AMBK2 13 DK0030256912
AMBK1 13 DK0030259189
AMBK6 13 DK0030259692


NASDAQ OMX Copenhagen has confirmed that it will comply with this request, and trading on NASDAQ OMX Copenhagen with the abovementioned securities will be suspended until further notice.

The agreement with Finansiel Stabilitet A/S

The abovementioned agreement with Finansiel Stabilitet A/S implies in general terms that the continuing bank under Finansiel Stabilitet A/S, Amagerbanken af 2011 A/S, takes over the assets of the bank, including loans, branch offices and technical systems.

All employees are transferred to the continuing bank on unchanged employments terms.

The continuing bank is open for customers from Monday morning, 7 February 2011, and will – with the limitations resulting from the transfer – be able to assist customers with their regular business, just as accounts and credit cards will be active. For technical reasons, the bank’s internet bank will be shut down for a shorter period of time Sunday evening from 8 p.m. to 12 p.m. Finansiel Stabilitet A/S has provided liquidity to the continuing bank.

In connection with the transfer, a preliminary valuation of the assets has been made by Finansiel Stabilitet A/S. In the preliminary valuation, the assets including commitments are valued on basis of a winding-up scenario, cf. above. As part of the agreement with Finansiel Stabilitet A/S, the continuing bank will take over non-subordinated liabilities as of the transfer date for an amount equal to the estimated value, which equals a preliminary dividend percentage of 58.8.

Depositing customers will be covered within the limits of the depositor’s guarantee (in Danish ”indskydergarantien”), which as a starting point covers net deposits of up to DKK 750,000. Certain specific deposits will be fully covered. Further information on the guarantee can be found on Deposits covered by the guarantee will be recorded on the customer’s accounts in the continuing bank. Deposits that are not covered will be registered as claims in the bankruptcy estate of the wound-up bank. Of the bank’s more than 100,000 customers, approximately 700 customers will be affected by this. The customers will receive a bank statement as soon as possible.

Other creditors in Amagerbanken, including lenders of subordinated loan and other subordinated debt, must direct their claim towards the estate in bankruptcy. The individual government guarantees issued by Finansiel Stabilitet A/S to Amagerbanken will as a starting point continue on unchanged terms. Other claims pursuant to bilateral agreements shall be calculated as of the date of the takeover and filed in the same manner as other creditors. Business partners of the bank are kindly asked to contact their usual contact person at the bank in order to evaluate the possibility of continuing the co-operation.

The current board of directors has been asked to continue in the continuing bank. It has accepted this request and it expects to enter into a new agreement with Steen Hove as sole chief executive officer in the continuing company and a separate agreement with Allan Ottsen.

Press briefing

On Monday, 7 February 2011, at 9 a.m., a press briefing will be held at which further information will be provided in respect of the above.

Shareholders’ information meeting

In accordance with Section 247(2) of the Danish Financial Business Act, the board of directors hereby invites the shareholders to an information meeting regarding the transfer and this meeting will be convened on 15 February 2011, if possible. Further information regarding time and place will be posted on the website of the new bank:

On behalf of the bank, the board of directors and management deeply regret the losses that shareholders, lenders, affected depositors and others may suffer.


Sincerely yours



                                                          Niels Heering                                   Steen Hove

                                                          Chairman of the board                  Chief Executive Officer