Kaupthing Shareholders Own Indebted Offshore Companies Skip to content

Kaupthing Shareholders Own Indebted Offshore Companies

By Iceland Review

Two companies, which were founded by Kaupthing in August 2008 and registered in Tortola, owed the bank billions of ISK one month later. The companies in question are Holly Beach S.A., owned by Skúli Thorvaldsson, and Trenvis LTD, owned by Kevin Stanford.

Copyright: Icelandic Photo Agency.

Stanford was the fourth largest shareholder in Kaupthing at the time with a 4.3 percent stake in the bank and Hilt Investment Group, a company in Thorvaldsson’s ownership, held an almost 3.1 percent stake in the bank, Morgunbladid reports.

Stanford and Thorvaldsson were the largest individual borrowers from Kaupthing in Luxembourg.

Loans and loan channels to Thorvaldsson amounted to EUR 651.7 million (USD 506.6 million) at the end of September last year, according to a document from Kaupthing that was leaked to the internet last week. Loans to Stanford amounted to EUR 374.8 million (USD 540 million).

Among collateral for Thorvaldsson’s loans were commercial papers from Kaupthing, worth an estimated sum of EUR 71.6 million (USD 103.1 million). The value of his collateral in total was estimated EUR 437.4 million (USD 630 million)—67 percent of the borrowed amount.

Trenvis LTD, Stanford’s company, was provided with a EUR 41.7 million (USD 60 million) loan from Kaupthing to purchase derivatives related to credit default swaps (CDS) on the bank itself.

This demeanor is considered similar to the trade between Sheik Mohamed bin Khalifa Al-Thani and Kaupthing in September last year, which allegedly took place to raise the value of the bank’s shares.

A large part of the collateral for Stanford’s total loans of EUR 374.8 million were shares in Kaupthing and Baugur Group, which are now worthless.

Click here to read more about the trade between Kaupthing and Al-Thani and here to read more about Baugur going into receivership.

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