Former Kaupþing Luxembourg CEO Must Pay Millions Skip to content

Former Kaupþing Luxembourg CEO Must Pay Millions

Former CEO of Kaupþing Luxembourg Magnús Guðmundsson must pay the bankruptcy estate ISK 717 million (USD 5.6 million, EUR 4.35 million) according to yesterday’s ruling at the Reykjavík District Court, Fréttablaðið reports.

kaupthinghead_ipa-sjoKaupþing headquarters in Iceland. Photo copyright Icelandic Photo Agency.

Magnús received the amount in a loan to buy shares in the bank before it collapsed. Several days before the collapse, the bank’s management decided to remove the personal guarantees on loans to the bank’s staff members.

After the resolution committee took over the bank’s operations, it was decided to reverse the earlier decision on the grounds that it had been illegal to give him the loan without expecting repayment and proceedings were initiated at the District Court, reports.

The court has handed similar rulings in two other recent cases. Last week, former Kaupþing CEO Helgi Þór Bergsson was ordered to pay ISK 600 million (USD 4.7 million, EUR 3.6 million).

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