ISK 2.9 Billion Written Off Due to Sale of Publisher Skip to content

ISK 2.9 Billion Written Off Due to Sale of Publisher

Landsbanki and Íslandsbanki (formerly known as Glitnir) will have to write off ISK 2.9 billion (USD 26 million, EUR 20 million) in total because of the sale of Árvakur, the publisher of daily newspaper Morgunbladid, to holding company Thórsmörk.

According to sources of the Stöd 2 and Vísir news departments, the purchasing price of Árvakur was ISK 2 billion (USD 18 million, EUR 14 million). Of that amount, the banks will take ISK 1.7 billion to cover debts and ISK 300 million will be used for Árvakur’s new equity.

Árvakur owed ISK 4.6 billion (USD 41 million, EUR 32 million); ISK 3.7 billion to Íslandsbanki and ISK 860 million to Landsbanki. Once Thórsmörk has paid ISK 1.7 billion to cover debts, approximately ISK 2.9 remains that the two banks will have to write-off.

Chairman of the Liberal Party Gudjón Arnar Kristjánsson asked Minister of Finance Steingrímur J. Sigfússon in parliament on Monday whether the sale of Árvakur would set an example for other companies.

Kristjánsson claimed a dangerous path had been entered with such large write-offs.

Sigfússon responded that the sale of Árvakur wasn’t necessarily an example for other companies; each case had to be evaluated individually, which is in the hands of the banks.

Thórsmörk is owned by Óskar Magnússon and other investors, who made the highest offer to Árvakur.

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