|Former Kaupthing Bankers To Pay Loan|
|Written by Iceland Review|
|Friday, 29 July 2011 10:00|
Two former employees of Kaupthing bank are being held liable for a loan they took from the bank to fund stock purchases in the Kaupthing bank; the loans had previously been written off by former CEO, Hreidar Már Sigurdsson following the financial collapse of 2008.
From Kaupthing headquarters in Reykjavík. Photo by Icelandic Press Agency.
A man and a woman in their forties were sentenced by the Reykjanes District Court to pay the loans, a total of ISK 13.000.000 (USD 112.000 or EUR 78.500); with the sentencing Sigurdsson’s decision has been revoked by the courts.
The man in question was employed in the Business Administration department kaupthing and he is to pay ISK 6,3 million (USD 54.200 or EUR 34.000), and the woman, a manager of the Transaction Services division, is to pay ISK 6,6 million (USD 56.900 or EUR 39.800), ruv.is reports.
Two former employees of Kaupthing bank were also held liable for the loans they took for share purchases in the bank by the Reykjavík District Court, but both parties appealed their cases to the Supreme Court. The Supreme court will rule in their case after litigation commence toward the end of the year.
Prior to the economic crisis in Iceland, bank employees at Kaupthing were encouraged to invest in the company for vested interest; 75 former Kaupthing staff members, who borrowed from the bank to fund the purchases, have gone to court with their indiviual cases and 45 have settled their cases with the Kaupthing Resolution Committee provisionally pending a ruling from the Icelandic Supreme Court in a case.
It was in September 2008 when senior management staff suffered severe financial losses due to the company’s lowering stock prices and a decision was made to write off the loans taken. The shares were used as collateral for the loans taken.
|Last Updated on Friday, 29 July 2011 11:15|