Kaupthing Rejects Krona Asset Writedowns Sought by Government

Your rating: None Average: 5 (1 vote)
2013-09-24 23

The caretakers of Kaupthing Bank hf won’t ask creditors in the failed lender to accept writedowns on their krona-denominated claims, a step the government says is necessary to end the island’s capital controls.

“The winding up committee is obliged by law to preserve the value of Kaupthing’s assets,” Johannes Runar Johannsson, a member of Kaupthing’s winding-up committee, said in an interview last week in London. “It’s therefore difficult, or even impossible, to see how the winding-up committee could make such a recommendation, given its legal duties.”