Iceland

Iceland Targets Creditor Writedowns as Accord Sought This Year

Posted 10/07/2014 - 08:11 by anrigaut

2014-07-09 23

The creditors in Iceland’s failed banks will need to accept writedowns of their assets as the government will push for an accord this year to ensure economic stability, Finance Minister Bjarni Benediktsson said.

“We’re trying to maintain stability in Iceland,” he said today in an interview with Bloomberg Television. “Write-offs will need to take place and the market is also showing that this will need to happen if you just look at what’s available in terms of pricing of claims against the estates.”

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“We are concerned about the balance of payment going forward,” Benediktsson said. “A solution can be created, the incentives are all here, some people are waiting to gain access to their assets and we are concerned about having the controls for too long.”

Bonds issued by Glitnir last traded at about 29 cents on the dollar, while Kaupthing debt traded at 24 cents, according to website Keldan. Landsbanki bonds traded at just over 5 cents.

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Iceland Prosecutor Indicts Ex-Kaupthing Bosses for Embezzlement

Posted 08/07/2014 - 21:41 by anrigaut

2014-07-07 23

Iceland’s special prosecutor has indicted three former Kaupthing Bank hf executives and one of the bank’s clients for embezzlement and violating their legal mandate before the lender’s 2008 collapse.

Former Chief Executive Officer Hreidar Mar Sigurdsson, ex-Chief Financial Officer Gudny Sveinsdottir and Magnus Gudmundsson, the head of the Luxembourg unit, were charged with embezzling 3 billion kronur ($26.3 million) into the account of a company controlled by a client, according to the indictment dated June 26 and obtained by Bloomberg today. The client was charged with participating in and covering up the transactions and money laundering.
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Reykjavík County Court hands out severe prison sentences to four bankers

2014-06-26 23

“I’m just doing it for you guys,” Birkir Kristinsson was caught on tape saying to one of his fellow bankers at Glitnir. Kristinsson, the brother of Magnús Kristinsson – owner of fishing industries in the Vestman islands and a big borrower in the Icelandic banks – has been sentenced to five years in prison together with three Glitnir colleague two of whom also got the same prison sentence. The fourth was sentenced to four years in prison. Kristinsson has appealed and so will the three others most likely do. ...

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Kaupthing challenges the prime minister

2014-05-19 23

Prime minister Sigmundur Davíð Gunnlaugsson has time and again said that the Winding up committees of Glitnir and Kaupthing have not yet presented any composition proposals to Icelandic authorities. Both estates have indeed done so long time ago, actually in 2012.

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It is not clear why the prime minister keeps on repeating something that is so obviously not correct. Glitnir has challenged him more than once on this. Now Kaupthing has done the same. It remains to be seen if the prime minister will stick to his version.

The Kaupthing statement is here: http://www.kaupthing.com/home/announcements/all-announcements/2014/05/19...

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The Landsbanki agreement: a first step towards orderly lifting capital controls or into turmoil?

2014-05-18 23

Last December, Landsbankinn announced it would need to extend its two bonds of December 2009 with maturity 2018. On May 8, Landsbankinn and the LBI, the estate of old Landsbanki, reached an agreement to extend the final maturity from 2018 to 2026. In return, creditors want a pay-out of fx cash funds with the LBI, only possible with an exemption from the Central Bank of Iceland, CBI, with the blessing of the minister of finance. – With a time clause in the new agreement there is now pressure on the government to find the holistic solution to the estates ...

The nature of the estates of the three biggest Icelandic banks, which all failed in October 2008, is not the same. This is also reflected in the ownership of the three new banks. On one hand there is Landsbanki, on the other Glitnir and Kaupthing.

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New indictments against Kaupthing managers

Posted 12/05/2014 - 23:04 by anrigaut

2014-05-11 23

Last week, the Office of the Special Prosecutor initiated criminal proceedings against three Kaupthing managers for breach of fiduciary duty. The managers are Sigurður Einarsson formerly chairman of Kaupthing, its CEO Hreiðar Már Sigurðsson and Kaupthing Luxembourg managers Magnús Guðmundsson.

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Bankruptcy solves no problem

Posted 01/05/2014 - 12:11 by anrigaut

2014-04-30 23

Translation of a further article by Johannes Runar Johannsson of Kaupthing Winding-up Committee.

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Kaupthing hf 22 Apr 2014: translations of two newspaper articles ...

Posted 23/04/2014 - 10:02 by anrigaut

2014-04-21 23

English translations of two very clear and interesting articles by a member of Kaupthing‘s winding-up committee, recently published in the Icelandic press, are available on the Kaupthing hf website.

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Iceland's banks to come back from the dead

Posted 18/04/2014 - 09:38 by anrigaut

2014-04-16 23

Iceland's Arion Banki is to provide an even greater test of investor appetite for risky banks than recent deals from Greece as it plots its first wholesale market funding in a major currency in six years.

The bank was formerly known as Kaupthing Bank, a name that triggers memories of bank failures, burnt bondholders and legal wrangling. ...

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Cold comfort for Icesave guarantors

Posted 25/02/2014 - 11:49 by anrigaut

2014-02-25 (All day)

The UK Financial Services Compensation Scheme (FSCS) and the Netherlands Bank (DNB) have launched legal proceedings in Iceland against the Icelandic Depositors and Investors' Guarantee Fund (TIF) in an attempt to confirm the TIF remains obliged to cover the cost of Iceland's €20,887 ($28,687) guarantee to each Icesave depositor.

In rejecting the British and Dutch claim on the State of Iceland as sponsors of the TIF, Iceland had always assured the UK and Netherlands that their deposit protection schemes would probably be able to recoup their payouts from the Landsbanki estate anyway. The lawsuit for a total of 556 billion króna ($4.9 billion) plus interest and costs, filed in the District Court of Reykjavik on November 28, 2013 – but which was not made public until this month and then by the TIF rather than the FSCS or DNB – seems to have been triggered by several putative Icelandic government demands on the Landsbanki insolvency estate. ...

Update: To read the full article, google the title and follow the link there (seems the direct link hits a paywall).

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