Reykjavík District Court ruled on Thursday that former CEO of Icelandic investment company Baugur Group, Gunnar Sigurðsson, is to pay the bankruptcy estate of BGE holding company ISK 1.7 billion (USD 14 million, EUR 10 million).
Reykjavík District Court.
Gunnar intends to appeal the verdict to the Supreme Court, Fréttablaðið reports.
BGE was founded in November 2003 around the warrant agreement of Baugur’s employees and was in their ownership.
Through this system, the employees believed that they couldn’t be held personally liable for loans that they obtained to buy shares from Kaupþing through Baugur.
Now Reykjavík District Court has reached a different conclusion, namely that those who took advantage of this system are liable for the loans.
The verdict could thus impact cases of a similar nature against other former employees of Baugur, who obtained billions in combined purchases of such shares. Many of these have negotiated their positions with the liquidator, as stated in Viðskiptablaðið in Agust.
Click here to read more about Baugur.