UPDATE 1-Kaupthing Luxembourg creditors OK restructuring

Posted 05/06/2009 - 18:58 by mikepapa

2009-06-04 21

BRUSSELS, June 5 (Reuters) - Creditors of the Luxembourg arm of crisis-hit Icelandic bank Kaupthing have approved a restructuring plan put forward by UK investment fund Blackfish Capital, an administrator for the bank said on Friday.

The approval paves the way for Blackfish Capital to take over Kaupthing Luxembourg, ending more than half a year of uncertainty for the bank's savers.


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Iceland says creditor talks to start this week

Posted 02/06/2009 - 17:51 by Lucky Jim

2009-06-01 23

Let's hope this turns out to be light at the end of the tunnel

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Iceland to submit report on failed banks this week

2009-04-14 23

Iceland's government said on Wednesday an evaluation of the assets and liabilities of its failed banks would be submitted to its market authority and main creditors within two days, with a deal expected by late May.

Negotiations on the division of the assets will begin as soon as possible, a government spokesman told Reuters, with an agreement expected by May 18.

Iceland's main commercial banks -- Kaupthing, Landsbanki and Glitnir -- failed last year, leaving creditors mainly across Europe, owed billions of dollars.

Creditors include a wide-range of individual depositors, bondholders and financial institutions.

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EU OKs Finnish guarantee for Kaupthing depositors

2009-01-21 (All day)

BRUSSELS, Jan 21 (Reuters) - Finnish authorities on Wednesday won approval from the European Commission for state guarantees to benefit depositors in the Finnish branch of insolvent Kaupthing Bank (KAUP.IC), the EU executive said.

The Commission, the competition watchdog of the 27-nation European Union, said the measure guarantees banks that ensured full compensation of Kaupthing's Finnish depositors against legal risks.

"The state guarantee combined with the Finnish banks' initiative will help to maintain depositors´ confidence and stability in the Finnish banking sector," EU Competition Commissioner Neelie Kroes said in a statement.

The failure of the Icelandic Kaupthing Bank also triggered the failure of its Finnish branch. As a result, the branch's depositors were unable to make immediate withdrawals or might have lost part of their deposits, the Commission said.

Fearing a broader loss of confidence among Finnish depositors, banks including Nordea Bank (NDA.ST), OP-Pohjola and Sampo (SAMAS.HE) offered to compensate depositors in full.

"While this guarantee includes state resources, the measure clearly helps to implement a private arrangement to restore the confidence in the Finnish banking sector and more generally in the Finnish economy," the Commission said.

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Credit Agricole Belgium acquires Kaupthing accounts

2009-01-17 (All day)

BRUSSELS, Jan 16 (Reuters) - Belgian bank Credit Agricole has signed a deal to acquire the accounts of Belgian savers at the Luxembourg arm of collapsed Icelandic bank Kaupthing (KAUP.IC), Credit Agricole said on Friday.

Credit Agricole's internet bank Keytrade Bank was among rumoured candidates to take over the accounts.

The retail bank, in which a group of Belgian cooperatives and French bank Credit Agricole (CAGR.PA) each have a 50 percent stake, will first acquire Kaupthing Belgium's 5,000 Private Banking customers, the Belgian Credit Agricole said in a statement.

It added that once all the legal obligations have been fulfilled, Keytrade Bank will acquire Kaupthing's 16,000 Belgian online banking clients.

Luxembourg's financial regulator froze Kaupthing Luxembourg accounts in November after Iceland took control of its parent company.

Credit Agricole said the accounts of Belgian investors would probably not be unlocked before the end of March.

"The former clients of Kaupthing Bank Belgium ... will be able to access their money as soon as the restructuring of Kaupthing Luxembourg is finalised," Thierry Ternier, chief executive of Keytrade Bank, said in the statement.


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Kaupthing Luxembourg to be sold to Arab Investors - Belgium and Luxembourg to guarantee deposits

2009-01-14 (All day)

BRUSSELS, Jan 6 (Reuters) - Belgium and Luxembourg will enter talks to create a fund guaranteeing depositors' savings at the Luxembourg arm of collapsed Icelandic bank Kaupthing (KAUP.IC), Belgium's finance minister told Reuters on Tuesday.

Belgium would contribute between 75 and 100 million euros to the fund, Finance Minister Didier Reynders said as he exited a meeting with key ministers where they agreed to propose the idea to Luxembourg.

He said the fund would mean a risk for the states and their taxpayers should Kaupthing Luxembourg fail, but stressed that their primary goal would be for Luxembourg to sell the bank by the beginning of April, likely to a group of Arab investors already in talks to purchase the distressed company.

"We would take a risk, on behalf of the Belgian state, of between 75 and 100 million euros," Reynders said, specifying that the fund would guarantee up to 20,000 euros per account immediately, and ultimately up to 100,000 euros per account should Kaupthing not be taken over. "But our priority remains having the bank bought," he said.

Luxembourg's Budget and Treasury Minister Luc Frieden broadly supports creating such a fund, though details must still be worked out, an official at Luxembourg's Finance Ministry told Reuters.

Reynders declined to say how much Belgium would ask Luxembourg to contribute to the fund, saying only that Belgium would not risk more than 100 million euros.

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Landsbanki files for U.S. bankruptcy

Posted 10/12/2008 - 00:39 by steveejeb

2008-12-10 (All day)

NEW YORK (Reuters) - Landsbanki Islands hf sought bankruptcy protection from its U.S. creditors on Tuesday, the last of Iceland's three largest banks to do so in the last two weeks.

The Reykjavik-based lender filed a Chapter 15 bankruptcy petition with the U.S. bankruptcy court for the Southern District of New York. It said it had more than $1 billion of both assets and liabilities.

The assistant asked for Landsbanki's court proceedings in Iceland to be recognized in the United States.

"The ultimate goal of Landsbanki is to satisfy the claims of creditors and to try to preserve the value of the bank's assets to the extent possible," Bjarnason wrote.

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Isle of Man is fully compliant with OECD transparency standards states OECD Director.

Posted 09/12/2008 - 13:09 by steveejeb

2008-12-09 (All day)

"Jeffrey Owens, Director of the Centre for Tax Policy Administration at the (OECD) Organisation for Economic Cooperation and Development, told Reuters."Only seven centres -- Aruba, the Dutch Antilles, the British Virgin Islands, Bermuda, the Isle of Man, Guernsey and Jersey -- were fully compliant with OECD transparency standards."

My Words:
Surely this is a good response against all those seeking to spin the IoM offshore status as a tax haven.

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Kaupthing Luxembourg bid stalled

2008-12-09 (All day)

BRUSSELS (Reuters) - A decision on the takeover of the Luxembourg arm of troubled Icelandic bank Kaupthing (KAUP.IC: Quote, Profile, Research, Stock Buzz), will be postponed for technical reasons, a spokesman for Belgian Prime Minister Yves Leterme said on Friday.

The decision was due today, but the spokesman said the bid process had run into technical and legal complications. "The interest of the candidate buyer remains intact," he said, adding the the hurdles were not impossible to overcome and that a decision will be made in the course of next week.

My words:
Could the "technical and legal complications" possibly be similar problems that KSF(IoM) may be having in being sold on?

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Iceland bank Kaupthing files for US bankruptcy. Has about $14.8 billion of principal assets and $26 billion of principal indebtedness

2008-12-01 (All day)

Iceland bank Kaupthing files for US bankruptcy
Mon Dec 1, 2008 10:12am EST

NEW YORK, Dec 1 (Reuters) - Kaupthing Bank hf (KAUP.IC: Quote, Profile, Research, Stock Buzz), Iceland's largest bank, has sought bankruptcy protection from its U.S. creditors.

The Reykjavik-based lender filed a Chapter 15 bankruptcy petition on Sunday with the U.S. bankruptcy court for the Southern District of New York.

The filing came after Iceland's Financial Supervisory Authority seized Kaupthing, Glitnir Banki hf and Landsbanki Islands hf, the nation's three largest banks, as the global credit crisis deepened. Glitnir filed on Nov 26 for Chapter 15 protection.

Kaupthing has about $14.8 billion of principal assets, including $222 million located in the United States, and $26 billion of principal indebtedness, according to a court filing by Olafur Gardarsson, a court-appointed assistant who is managing the bank's reorganization.

He asked to have Kaupthing's court proceedings in Iceland recognized in the United States. "The ultimate goal of Kaupthing is to satisfy the claims of all creditors and to try to preserve the value of the bank's assets to the extent possible," Gardarsson said.

Iceland banks had taken on billions of dollars of debt in recent years to fund aggressive overseas expansion.

Gardarsson said the country's decision on Sept 29 to buy a 75 percent stake in Glitnir led to a plunge in Iceland's krona, credit rating agency downgrades for the country and its banks, and a "run on the banks" by foreign investors trying to shed Icelandic assets.

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