Iceland Court: Icesave Deposits Are Priority Claims Skip to content

Iceland Court: Icesave Deposits Are Priority Claims

icesave-logoReykjavík District Court ruled yesterday that the Icesave deposits are priority claims to the Landsbanki bankruptcy estate in a case which general claimants filed against the bank’s winding-up committee.

This is the second verdict which indicates that the emergency law established in October 2008 was justifiable—recently another verdict was announced saying that wholesale loans are also priority claims, reports.

Both of these verdicts will likely be appealed to the Supreme Court. These verdicts are a prerequisite for commencing payments from the Landsbanki bankruptcy estate.

If Reykjavík District Court had concluded that the Icesave deposits were general claims but not priority claims, it would have upset plans on payments from the bank’s estate because then the British and Dutch deposit guarantee funds would have received much lower amounts because of the Icesave deposits.

Click here to read more about Icesave.

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