Depositors with the failed Guernsey bank Landsbanki have suffered a setback to their campaign to get their money back.

The bank went into administration in 2008 following the collapse of its parent in Iceland.

Some of the Guernsey depositors' cash had been sent to the parent bank and efforts are underway to recover it. But the depositors have now been told they're among creditors classed as a "low priority" by the parent bank.

Landsbanki Iceland is also refusing to recognise the guarantee it offered for savings with Landsbanki Guernsey. 15-Feb-10.

http://www.channelonline.tv/channelonline_guernseynews/DisplayArticle.asp?ID=483863

* [For the avoidance of doubt LG depositors' claims were arbitrarily rejected 'in every respect' and given no 'priority' at all.]