Landsbanki Pays First Part of Icesave Debt

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Landsbanki Pays First Part of Icesave Debt

icesave-logoThe bankruptcy estate of Landsbanki paid a more than ISK 350 billion (USD 2.9 billion, EUR 2.2 billion) deposit on the Icesave debt, which is the first large payment from the estate. It could take a few years to complete the repayment to the bank’s claimants.

According to ruv.is, ISK 266 billion were paid to the British deposit insurance fund and ISK 88 billion to the Dutch fund, which is one third of the Icesave debt; Icesave was Landsbanki’s branch in the UK and the Netherlands.

Approximately 75 billion were deposited to so-called storage accounts due to cases that have yet to be completed and ISK 3 billion to cover various smaller claims. A total of ISK 432 billion (USD 3.6 billion, EUR 2.7 billion) were paid out of Landsbanki’s bankruptcy estate yesterday.

“We absolutely want these funds to go to those entitled to them. It will take a few more years, how many we simply cannot say at this point,” said Halldór Bachman, who is on Landsbanki’s winding-up committee.

According to Morgunblaðið*, Hannes Smárason, former CEO of the investment company FL Group received a payment of more than ISK 350 million (USD 2.9 million, EUR 2.2 million) from Landsbanki’s bankruptcy estate when the bank’s winding-up committee made the first payments to the bank’s priority claimants yesterday. The amount is expected to triple in the coming months.

Click here to read more about Hannes’s affairs and here to read more about Icesave.

ESA

* The Icelandic letter ð is pronounced like th in that.