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

Iceland News

This page contains brief summaries of and links to media reports on the topic of Iceland News.

Landsbanki bought £220m of its own shares prior to collapse

Landsbanki, the Icelandic bank which owned Icesave, bought more than £220m of its own shares in the days leading up to its collapse, creditors have been told.

The Resolution and Winding Up Committee told a meeting of creditors in Iceland that the purchases were being "investigated".

The revelation will prove embarrassing for London-based advisers of Landsbanki . .

Creditors were also told that the committee was suing former executives of the bank who authorised £200m of loans to "related parties".  02-Dec-10.

Landsbanki Committees Seek Compensation From Former Executives

(Bloomberg) -- Landsbanki Islands hf’s winding-up and resolution committees are seeking compensation from the bank’s former executives for allegedly granting loans to related parties.

The committees want the executives who ran the bank in 2008 to pay it 30 billion kronur ($258 million) to 35 billion kronur in compensation for losses on the loans, they said in an e- mailed statement today following a creditors’ meeting. . .

The bank has taken decisions on 9,152 claims filed against it, the committees said in the statement.

“By far the greatest number” of claims discussed at previous creditor meetings “were objected to,” according to the statement.  01-Dec-10.

Landsbanki administrators accuse auditor of negligence

PricewaterhouseCoopers warned it will face claims for damages on behalf of collapsed Icelandic bank's creditors.

Administrators to Landsbanki, the failed Icelandic bank behind the Icesave internet deposit account scandal, have accused the firm's former auditors, PricewaterhouseCoopers, of negligence, warning the accounting firm they expect to claim damages on behalf of creditors.

Landsbanki's creditors include more than 100 UK councils which placed a total £900m with Icesave and — unlike British retail savers — were not protected by a deposit guarantee. The negligence allegations set out at a creditors' meeting yesterday relate to PwC's audit of Landsbanki's 2007 accounts and an endorsement of its half-year financial update six months later. . .

The accusation against PwC's Iceland operations comes after a year of forensic investigations conducted by a team from Deloitte in London. As well as signalling their intention to pursue damages from PwC, administrators have filed a legal claim against former Landsbanki executives relating to losses of more than 30bn kronur (£165m). 01-Dec-10.

Iceland draft deal with Britain said ready

(Reuters) - Iceland's business lobby said on Tuesday it had seen the outline of a draft deal on repaying Britain and the Netherlands and that it was much improved from one rejected by voters in March. . .

. . . which would involve Iceland repaying 40-60 billion Icelandic crowns (224 million pounds) to the British and Dutch.

That is much lower than the $5 billion (3 billion pounds) that the governments paid out to investors in high-interest Icelandic bank accounts though it is understood that a big portion of the debt could be covered by a sale of assets in failed bank Landsbanki.

The Dutch and Icelandic finance ministries said no deal had been reached but that progress was being made. 16-Nov-10.

Iceland Bank Creditors Warn They Will Fight Debt Relief Measures

Creditors at Iceland’s banks said they will fight measures that hurt their financial interests after the government sought a guarantee from the country’s lenders that they forfeit their right to sue the state. . .

Creditors “reserve all rights to pursue any and all legal remedies to prevent the losses caused by the proposed legislation,” according to a letter signed by Ragnar Adalsteinsson, a lawyer with Adalsteinsson & Partners representing the Coordination Committee of the International Commercial Lenders Group, which includes creditors of Kaupthing Bank hf, Glitnir Bank hf and Landsbanki Islands hf.16-Nov-10.

Icesave debt could be more manageable than previously feared

It is now believed that 93 percent of Icesave and other priority foreign claimants can be covered by the assets of Old Landsbanki. [Our emphasis.]

The bank’s resolution committee presented its accounts for the third quarter and a claimants’ meeting in London today, RUV reports.

There was an ISK 18 billion (USD 161.3 million) improvement in the capital retrieval of the old bank during the quarter. According to the resolution committee, roughly ISK 92 billion is now expected to fall on the shoulders of the Icelandic taxpayer – which is a lower figure than previously estimated.

The rate of recovery for domestic claimants in Icelandic kronur is slightly lower, at an estimated 86 percent. [Ends]   10-Nov-10.


Iceland sees "Icesave" talks ending in 2010

(Reuters) - Negotiations on repayment of $5 billion (3 billion pounds) lost by British and Dutch investors in Iceland's 2008 banking crash are likely to be resolved by the end of this year, the island's foreign minister said on Tuesday. . .

The minister [Ossur Skarphedinsson] said he expected the parties to be able to conclude the talks within a month, "In a manner that both sides will be, perhaps not happy with, but content." 02-Nov-10.

Icesave Deal on the Horizon?

Negotiations on Landsbanki’s Icesave deposits in the UK and the Netherlands are said to be going well and an agreement might even be underway, in as soon as two months, according to the sources of Icelandic national broadcaster RÚV.

It can now be stated with more certainty how much the assets of Landsbanki are worth and it is considered likely that approximately 90 percent of the Icesave debt can be obtained with their sale, reports.

Moreover, a larger part of these assets are in cash than when the Icesave negotiations were initially launched.

However, RÚV’s sources state that certain disputes have yet to be resolved, which impacts the agreement’s final conclusion, such as when repayment is to begin and in what length of time the amount will be paid back.[Ends.] 19-Oct-10.

Iceland's Ex-Premier Defends Innocence in 2008 Crisis

Iceland's former Prime Minister Geir H. Haarde defended his role in the 2008 implosion of the island's financial system after a parliamentary committee recommended he be indicted for "violations" of his duties. . .

The committee of nine lawmakers was appointed in April after a separate commission investigating the causes of the 2008 crisis found that the government, central bank and financial regulator had all been "negligent" in their failure to address some of the factors that exacerbated the collapse. . .

A special prosecutor appointed to investigate the banking collapse is still probing the three lender' records. Three Kaupthing executives were arrested in May and released after spending as long as 12 days in solitary confinement.  . .

The committee also found that Haarde should be indicted because he failed to ensure that Landsbanki created a U.K. subsidiary when selling its Internet Icesave accounts there -- a measure that would have forced the British government to cover depositor claims, it said.  Bloomberg Buisness Week
Mon, 13 Sep 2010
article reprinted on [Quantum Future Group, ISA] website - 18-Sep-10.

Iceland intends to repay the Netherlands - paper

(Reuters) - Iceland will honour its promise to repay the Netherlands money that Dutch savers lost in the online accounts of a failed Icelandic bank, Iceland's finance minister said in a newspaper interview on Saturday.

Steingrimur Sigfusson told De Telegraaf, the Netherlands' largest newspaper, that the Dutch people had nothing to fear.

"The Netherlands can rest easy. Their money really will be returned," Sigfusson told the paper.

The British and Dutch governments want Reykjavik to return money paid to depositors whose funds were frozen in so-called "Icesave" accounts operated by Landsbanki, which collapsed along with Iceland's other main commercial banks in 2008.  18-Sep-10.

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