Sigurður Einarsson, former chairman of the board of Kaupþing, must pay the bank’s estate almost ISK 500 million (USD 3.9 million, EUR 3.1 million) because of a loan he took to buy stock in Kaupþing, according to a verdict announced at Reykjavík District Court yesterday.
Sigurður Einarsson. Copyright: Icelandic Photo Agency.
The court also confirmed the freezing of Sigurður’s property in Seltjarnarnes, his summerhouse in the rural district Kjós and his 20 percent owner’s share in private limited company Hvítsstaðir, ruv.is reports.
The amount is ten percent of an ISK 5.5 billion (USD 43 nillion, EUR 34 million) loan Sigurður took to buy stock in Kaupþing; he made an agreement on his personal liability not exceeding that ratio.
The case concerns the bankruptcy estate of Kaupþing filing an action for termination of the bank’s board’s decision to cancel personal liabilities of loans used to buy shares in the bank; the only collateral were the shares themselves.
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