2 billion dollar personal bankruptcy of former Kaupþing boss is the largest in Iceland’s history

Posted 08/01/2016 - 19:27 by anrigaut

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2016-01-07 (All day)

The liquidation of the estate of Sigurður Einarsson, the former chairman of the board of failed bank Kaupþing, has been completed the local news site visir.is reports. Creditors, which included Deutsche Bank and the Icelandic bank, Arion, which was created on the ruins of failed bank Kaupþing. Total claims on the estate exceeded 250 billion ISK, which comes to nearly 2 billion USD.

Only a small fraction of the claims were fulfilled, as Sigurður’s estate was found to be worth only 38.3 million ISK (290,000 USD/270,000 EUR), an amount which pales in comparison to the 254.4 billion ISK claims (1.96 billion USD/1.8 billion EUR). The trustee of the estate described it as worthless in an interview with the local newspaper DV. “As there were no assets in the estate we did not assess the validity of the claims made on the estate. These are simply claims that the creditors believe they have on Sigurður.”

Sigurður declared personal bankruptcy in September of 2015. ......