Eimskip Launches Internal Investigation Skip to content

Eimskip Launches Internal Investigation

Icelandic Shipping Company Eimskip has announced that the board has launched an investigation into certain details connected with the company’s operations some years back. The company will not comment on the investigation until it is completed.

In June 2008 the board of Emskip revealed that an investigation into the acquisition process of British company Innovate in 2006 and 2007 would be undertaken, Morgunbladid reports.

In summer 2008 Eimskip wrote off its stake in Innovate, which carried a book value of more than EUR 74 million (USD 105 million).

According to Morgunbladid, the current investigation also includes other issues in Eimskip’s operations.

Former CEO of Eimskip Baldur Gudnason has brought charges against the company after failing to receive severance payments that he is allegedly entitled to as part of his termination agreement.

Eimskip has confirmed that all payments to the former CEO were put on hold in May 2008 but the company does not intend to comment on that case further while it is being handled by the courts.

The online edition of the Sunday Times reported yesterday that the accountancy firm KPMG had resigned as the accountant of XL Leisure Group, a former daughter company of Eimskip which has now gone bankrupt, in 2006 because the board had ignored KPMG’s comments on potential accounting irregularities.

Click here to read more about that story and here to read more about Eimskip’s hefty loan guarantee after XL’s bankruptcy.

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