The old Kaupthing Bank has filed a lawsuit against British-Iranian entrepreneur Robert Tchenguiz through its resolution committee for an unpaid overdraft of GBP 643 million (USD 931 million, EUR 723 million).
Tchenguiz is a board member of Exista, an Icelandic financial services group that held a majority stake in the bank. The case opened in Reykjavík District Court yesterday, Morgunbladid reports.
The overdraft was granted to a credit account in foreign currency held by Oscatello Investments Ltd, which is owned by Tchenguiz and registered in the British Virgin Islands.
The agreement on the overdraft was made by a lawyer from Kaupthing’s legal department and insured with, among other things, collateral in shares in Exista and the British chain store Sommerfield, which was sold in July last year and paid for in October.
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Copyright of photo: Icelandic Photo Agency.