Restructuring and insolvency in Iceland


The team at BBA//Fjeldco advises clients on corporate restructurings and transactional and contentious insolvency mandates. Jointly led by Einar Baldvin Árnason and Gunnar Thor Thorarinsson, the practice counts Sports Direct, the Turkish Development Bank and Tommi’s Burger Joint on its diverse client roster. In a recent highlight, the group was involved in Icelandair's voluntary restructuring, a process which involved the participation of stakeholders and the national government. The practice recently welcomed Claire Broomhead from LOGOS and Páll Jóhannesson from SKR Legal Services.

Practice head(s):

Einar Baldvin Árnason; Gunnar Thor Thorarinsson

Other key lawyers:

Claire Broomhead; Páll Jóhannesson

Key clients

Eaton Vance Management

Alvotech and Alvogen

TBJ Group

Turkish Development Bank, World Bank

Nox Holding ehf.

Diversis Capital

Kvika bank hf.

Íslandsbanki hf.

ODDEG – Office Djiboutien de Développementde l’Energie Géothermique Retail Limited

The Collectivié de Strasbourg Metropole

Glitnir hf.

Arion Bank hf.

LBI ehf.

Kaupthing ehf.

Byr Savings Bank

Lex Law Offices

At Lex Law Offices, the restructuring and insolvency team is led by Þórhallur Bergmann and Guðmundur Ingvi Sigurðsson, and handles bankruptcy proceedings as both court-appointed liquidators and legal advisers; it also advises on the cessation of payments and agreements with creditors. In particular, the group recently assisted with the dissolution of Jötunn Vélar, a commercial distributor of agricultural machines. Newly-appointed partner Birgir Már Björnsson and Arnar Þór Stefánsson are also key contacts.

Practice head(s):

Þórhallur Bergmann; Guðmundur Ingvi Sigurðsson

Other key lawyers:

Birgir Már Björnsson; Arnar Þór Stefánsson


‘Diversified skill set with international connections.’

‘Guðmundur Ingvi Sigurðsson has been working with me for the last 12 years. He is a professional to the fingertips and has given me invaluable services during that time.’

Key clients

Bankruptcy Estate of Jötunn Vélar ehf.

Central Bank of Iceland Asset Holding ehf.

Bondholder Group of WOW Air hf.

Bankruptcy Estate of B230 ehf. (Previously Helicopter Services of Iceland hf.)

Bankruptcy Estate of Azazo hf. (Previously Gagnavarslan hf.)

Bankruptcy Estate of Prime Tours ehf.

Bankruptcy Estate of Hafnarskeid 6 ehf. (previously Frostfiskur ehf.)

Bankruptcy Estate of Verkleigan ehf.

Bankruptcy Estate of JB Byggingarfelag ehf.

Bankruptcy Estate of Procura radgjof ehf.

Work highlights

  • Acting as the liquidator of Jötunn Vélar ehf., a commercial distributor of agricultural machines.
  • Acting for a group of 40 bondholders against the airline WOW Air hf., in its insolvency proceedings.


The team at LOGOS handles issues relating to payment suspensions, bankruptcy proceedings, and voluntary and compulsory arrangements with creditors. Clients also benefit from the group's experience in advising on insolvent estates, distressed enterprises and the compulsory dissolution of companies, and leverages the firm's additional London office on cross-border matters. Led by contract specialist Heiðar Ásberg Atlason, the practice recently worked on Icelandair's restructuring following the impact of Covid-19.

Practice head(s):

Heiðar Ásberg Atlason

Other key lawyers:

Ólafur Arinbjörn Sigurðsson


‘This practice is well known and connected in Iceland. The teams consists of individuals with broad knowledge and good experience.’

‘Ólafur Arinbjörn Sigurðsson helped us to reconstruct our equities and debts. He successfully managed meetings with pension funds, banks and other institutions through a very difficult time in our history.’

Key clients

Icelandair hf.

Siminn hf.

Lyf og heilsa hf.



Pension Fund of State Employees

Arion bank


Estate of SS Hus ehf.

Baugur Group Estate

Origo hf.

Landsbankinn hf.

HSBC plc.

Barclays Bank plc.w

1912 ehf.

Work highlights

  • Advising Icelandair Group hf., the sole national passenger airline, in relation to the financial restructuring of the company, in response to the dramatic impact of Covid-19 on the aviation industry.
  • Assisted the municipality of Reykjanesbaer, which is the fifth largest municipality in Iceland, with its financial restructuring.
  • Acting in the bankruptcy proceedings and liquidation of the estate of the Baugur Group.

ADVEL Attorneys at Law

At ADVEL Attorneys at Law, the restructuring and insolvency team is led by Gudmundur Siemsen, and count Arion Bank, Advania and Capacent on its client roster. The group handles key matters including bankruptcies, reorganisations, distressed funding work and winding-up mandates. Arni Freyr Arnason recently joined the practice.

Practice head(s):

Gudmundur Siemsen

Other key lawyers:

Arni Freyr Arnason


At Juris, the restructuring and insolvency team handles contentious and advisory work for distressed companies and the respective liquidators. Led by Andri Árnason and Halldór Jónsson, the group is also experienced in rescission and asset recovery mandates. In a recent highlight, the practice acted for Kaupthing in winding-up proceedings and the subsequent composition issues. Stefán A. Svensson is also a key name to note.

Practice head(s):

Andri Árnason; Halldór Jónsson

Other key lawyers:

Stefán A. Svensson

Key clients

Kaupþing ehf.

Íslandsbanki hf.

Aðaltorg ehf.

HB 5-7 ehf.

Work highlights

  • Acted for Kaupþing in its winding-up proceedings and subsequent composition issues.
  • Advising Aðaltorg on issues connected to the contractor’s insolvency in mid-2020.
  • Advising HB 5-7 ehf. on its restructuring and reorganisation.

Réttur – Adalsteinsson & Partners

At Réttur – Adalsteinsson & Partners, the restructuring and insolvency team is jointly led by Sigurður Örn Hilmarsson and Kári Hólmar Ragnarsson. Acting for a client roster including BNP Paribas and Landesbank, the group handles domestic and cross-border matters, and has substantive experience in rescission issues and litigation. Recent mandates include assisting Icelandic Water Holdings with securing new financing and equity from Blackrock. Claudie Ashonie Wilson was recently promoted to the partnership.