A group of international banks has filed a legal challenge against the Landsbanki dissolution committee claiming that they should be treated as priority claimants. If they win, only 30-35 percent of the bank’s assets will go to pay Icesave.

According to Old Landsbanki, Iceland’s emergency banking laws allow the bank to classify the Dutch and British depositors’ insurance funds as priority claimants; but other creditors to the bankrupt bank, including big banks and bondholders, have decided to challenge the decision in court under Iceland’s bankruptcy laws. 29-May-10.

http://www.icenews.is/index.php/2010/05/29/landsbanki-law-suit-could-see-icesave-payout-cut-to-30-percent/