Billionaire Father and Son Lend Hand to Eimskip Skip to content

Billionaire Father and Son Lend Hand to Eimskip

Björgólfur Gudmundsson, majority owner and chairman of Landsbanki Bank, and his son Björgólfur Thor Björgólfsson, chairman of financial and investment companies Straumur-Burdarás and Novator, have decided along with a group of investors to take on the responsibility of a loan taken by the buyers of British tourism company XL Leisure Group, if Icelandic shipping company Eimskip will run into trouble because of it.

According to Morgunbladid, a considerable uncertainty has surrounded Eimskip for the past few days because of investors’ fear that the USD 200 million (EUR 141 million) loan will become Eimskip’s responsibility.

Yesterday, Eimskip was registered on the watch list of the OMX-NASDAQ Nordic Stock Exchange in Iceland after the company’s currency value dropped by 8.2 percent, after having plummeted by 16.5 percent the day before—on a day when all other companies on the stock exchange increased in value.

Gudmundsson’s and Björgólfsson’s decision is likely to limit the influcences which the responsibilty of the loan taken to purchase XL Leisure Group will have on Eimskip.

The board of the group is still trying to refinance the loan, but considering difficult circumstances on loan markets and among aviation and tourism services, the board of Emskip believes the responsibility will end up in their hands.

The father and son were already the principal owners of Eimskip through various holding companies.

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