UK fights bondholders to retain 'priority' status over £5bn Iceland cash

UK fights bondholders to retain 'priority' status over £5bn Iceland cash
British councils and the UK bank bail-out fund will defend their right to get back the entire £5bn they lost in the Icelandic banking crash against a group of hedge funds and other creditors who claim they should get a share of the money. Bondholders owed $4bn (£2.5bn), including hedge funds Arrowgrass, GLG and Varde, are challenging the "priority" status awarded to the local councils and the bail-out scheme by one of the banks, Landsbanki, in a test case due to start on Thursday in the Supreme Court of Iceland. (Continues)