Creditors of failed Icelandic lender Landsbanki Islands hf will get next to nothing back from their investments after assets are sold to cover the bank’s priority claims, Finance Minister Steingrimur Sigfusson said.

The comments end hopes creditors, including BNP Paribas SA and Nordea Bank AB, may have had of recouping their share of $27.4 billion in debt owed them since Landsbanki’s collapse in October 2008.

“The general claimants in Landsbanki are not likely to get much, if anything,” Sigfusson said in an interview in Reykjavik yesterday. “In the other banks, the situation is better and they will get some return,” he said, referring to bond holders in Kaupthing Bank hf and Glitnir Bank hf. . .

The government is considering guaranteeing the portion of $5.2 billion in Landsbanki’s depositor claims that won’t be covered by asset liquidations, estimated at about 10 percent, Sigfusson said. That includes Icesave deposits and other claims against collateral. 24-Aug-10.

http://www.bloomberg.com/news/2010-08-24/landsbanki-s-bond-holders-will-get-next-to-nothing-finance-minister-says.html