Glitnir Winding-Up Committee Sues Executives Skip to content

Glitnir Winding-Up Committee Sues Executives

The winding-up committee of the defunct bank Glitnir has filed charges against former CEO of Glitnir Lárus Welding, the bank’s former board and former CEO, and later chairman of Baugur Group Jón Ásgeir Jóhannesson because of a yielding loan of ISK 15 billion (USD 121 million, EUR 94 million) granted to Baugur by Glitnir in December 2007.


Jón Ásgeir Jóhannesson. Photo by Páll Stefánsson.

According to, the lawsuit states that Jón Ásgeir pressured Lárus into authorizing the loan to Baugur, a statement which Jón Ásgeir firmly denies.

Morgunblaðið added that the winding-up committee concludes that the decision-making process in authorizing the loan had been faulty, causing approximately ISK 6.5 billion (USD 52 million, EUR 41 million) in damages to Glitnir.

This is the amount the winding-up committee is requesting in damages.

Baugur used the loan to participate in a stock offering for FL Group, at which time Baugur was the company’s majority shareholder. Glitnir, along with other investors, later bought the loan back.

Jón Ásgeir commented on Stöð 2 yesterday that the accusations against him are ridiculous. “The winding-up committee has set out with big words but ended up in a ditch as in the America case,” he said, referring to the so-called Glitnir Seven case being dismissed by a US court.

“It’s a PR game where the dirt of the America case is being covered. This charge is filed a week after the America case came to an end,” Jón Ásgeir pointed out.

Chair of Glitnir’s winding-up committee Steinunn Guðbjartsdóttir confirmed that the new charge is partially related to the case dismissed by a US court. She wouldn’t rule out that other charges may be filed as well.

Click here to read more about the Glitnir Seven case and here to read about another court case concerning Lárus Welding.


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