Banks Take Over Assets of Iceland’s Baugur Group Skip to content

Banks Take Over Assets of Iceland’s Baugur Group

By Iceland Review

Discussions on the reorganization of Baugur Group’s loans in the old Icelandic banks came to nothing this week and yesterday the resolution committee of Landsbanki requested a moratorium on payments for BG Holding, Baugur’s subsidiary in the UK.

Jón Ásgeir Jóhannesson. Copyright: Icelandic Photo Agency.

“It is the worst solution for everyone. The destruction has become reality. Prime assets have been tossed into the fire,” said Jón Ásgeir Jóhannesson, chairman of the board of Baugur Group. Fréttabladid reports.

The resolution committee of Glitnir Bank said yesterday that Baugur’s ideas had been unrealistic. The company was unable to honor its obligations and therefore, for the sake of protecting the bank’s interests, the best solution had been to take over Baugur’s assets in which old Glitnir had collateral.

The banks are not planning to sell Baugur’s assets in the near future.

Click here to read more about Baugur Group.

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