The bondholders plan to sue LazyTown in court to get the unpaid debts paid. An enforcement request will be heard in the Reykjavík District Court in January, 2010.
If the judge approves the enforcement request, the bondholders can ask to foreclose on LazyTown. The enforcement request is submitted to compel payment. If it is unsuccessful, it is possible to request that LazyTown be taken into bankruptcy.
According to the information of Viðipsiblablað, LazyTown has for many months failed to make payments to the owners of unsecured bonds in the amount of 26 million US dollars. Attempts have been made to resolve the company’s bad operating situation within Landsbankinn, to which LazyTown owes almost fourteen million US dollars.
DV.is
Thursday, December 3, 2009 at 11:02 am
Author: Einar Þór Sigurðsson
“We are not going bankrupt and we have complete control over LazyTown,” says Susanne Noble, LazyTown’s information representative. The business newspaper Viðskiptablað reports today that the bondholders of LazyTown plan to sue the company in January 2010 for unpaid debts.
If the judge approves the enforcement request, the bondholders can ask to foreclose on LazyTown. The enforcement request is submitted to compel payment. If it is unsuccessful, it is possible to request that LazyTown be taken into bankruptcy, according to the Business newspaper Viðskiptablað.
Susanne says in an interview with DV.is that the Business Newspaper’s report is inaccurate. When asked to what extent, she says: “The situation at LazyTown is similar to that of many Icelandic companies. We are working on this in cooperation with the bondholders and the company is being restructured. We’ve had to lay off a few,” says Susan, adding that LazyTown has contracts in 128 countries and they are valid for the next few years. Then it is far from possible that the company owes 26 million dollars, as is claimed in the Business Newspaper.
In an interview with the Business newspaper Viðskiptablað today, Magnús Scheving, founder and CEO of LazyTown, says that negotiations have been completed with 92 percent of all bondholders. The company has loans that need to be paid off in a few years, but the organization of the repayment of these loans is hopeless.
Susanne says that Magnús should refrain from talking to the media about the company’s operations. “Magnús should not comment on the finances because that is not his role in the company,” says Susanne lightly.
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