30-Mar-2016: Liquidators' Update, see Deloitte site

Landsbanki Guernsey depositors told their claims 'rejected'

Landsbanki Guernsey depositors around the world have begun to receive a message from the Winding-Up Board of the bank’s Icelandic parent saying that it has “decided to reject” their claims for compensation on the grounds that “it has not been sufficiently shown” that the parent entity had ever agreed to guarantee its Guernsey arm's liabilities.

News of the rejection of the depositors’ claims for compensation was disclosed to International Adviser today in an email from Landsbanki Guernsey depositor Mark Ashbey, a member of the Landsbanki Guernsey Depositors’ Action Group (LGDAG).

Another member of the group, Matthew Dorman, said both his organisation and the joint administrators, Deloitte, “had been expecting this” and would be submitting objections to the decision to the Winding-Up Board. They will also continue to pursue their legal actions against Landsbanki Iceland and the Icelandic government, he added.

Spokespersons for Deloitte could not immediately be reached.

Around 1,600 depositors, more than 90% of them British, had some £120m on deposit in the Guernsey branch of Landsbanki when it collapsed in October 2008. At the time, Guernsey did not have a depositors’ compensation scheme in force. So far the Guernsey depositors have received about 67.5p in the pound, unlike Landsbanki depositors in the UK and Netherlands, who received 100% of their money months ago.  International Adviser website - 14-Feb-10.