Iceland’s Kaupthing Sues Robert Tchenguiz Trust Skip to content

Iceland’s Kaupthing Sues Robert Tchenguiz Trust

By Iceland Review

The resolution committee of the failed Kaupthing Bank has filed a GBP 180 million (USD 274 million, EUR 203 million) lawsuit against the trust of British investor Robert Tchenguiz in his home country for preventing Kaupthing from seizing control of its proceeds from the sale of Somerfield.

The headquarters of Kaupthing in Reykjavík. Copyright: Icelandic Photo Agency.

According to the Observer, the lawsuit is aimed at a decision made by the trustees and subsidiaries of the Tchenguiz Discretionary Trust (TDT) to remove an investment in a Somerfield ownership consortium from a complex loan collateral agreement weeks after Kaupthing began calling in loans in October 2008.

The resolution committee argues that the proceeds of the sale should have gone straight to Kaupthing. At one point in 2008, Kaupthing’s loans to companies that are in Tchenguiz’s ownership amounted to 46 percent of all deposits held by the bank, as the Observer reports.

Click here to read more about Kaupthing and Tchenguiz.

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