Freezing Order for Kaupthing Liquor Skip to content

Freezing Order for Kaupthing Liquor

An order to freeze asset belonging to Kaupthing bank worth ISK 154.8 million has been approved; the order is part of a litigation procedure against two former employees of Kaupthing bank, former director of Kaupthing in Iceland Ingólfur Helgason and former managing director Steingrímur P. Kárason.

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Kaupthing headquarter, Reykjavík. Photo by Icelandic Press Agency

In the litigation, the Resolution Committee is challenging write-offs of liability claims approved by Helgason, Kárason and other key employees of the bank mbl.is reports.

An agreement was made on September 25, 2008 by Kárason, Helgason and other executive employees that liability for loans taken by executive employees of Kaupthing bank, worth hundreds of millions per case, be written-off.

The freezing order is for an industrial building, 271 square meters in size located on Smidshöfdi in Reykjavík; sources told Fréttatíminn newspaper the resolution committee is also interested in the products stored in the building.

Liquor estimated to be worth somewhere between ISK 200 to 300 million (USD 1.7 to 2.6 million or EUR 1.2 to 1.8 million) is stored inside the building.

The Sheriff of Reykjavík approved the request but did not grant the committee permission to enter the facilities to find out what is being kept inside; however, the Resolution Committee will be monitoring the property, according to Fréttatíminn newspaper.

A private residence belonging to the former chairman of the Kaupthing board, Sigurdur Einarsson, located in Seltjarnarnes in the metropolitan Reykjavík area has been seized under freezing orders, as well as several other homes belonging to former employees of Kaupthing bank whose liabilities were written-off in 2008.

Click here to read more about Kaupthing.

JB

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