Investment company Stodir, the largest shareholder in Glitnir Bank before the Icelandic state acquired a 75 percent stake in the bank, requested a moratorium on its payments yesterday. Baugur Group is the largest shareholder in Stodir.
“I don’t believe Stodir will go bankrupt. The company has suffered great blows following the vicious actions of the Central Bank of Iceland towards Glitnir. We will now use the time to reorganize the operations and react to a changed situation,” chairman of Baugur’s board Jón Ásgeir Jóhannesson told Morgunbladid.
When the state acquired 75 percent in Glitnir through the Central Bank yesterday, the value of shares in Glitnir plummeted by more than ISK 200 billion (USD 2 billion, EUR 1.4 billion). Stodir, previously FL Group, lost ISK 60 billion (USD 599 million, EUR 415 million).
Many therefore predicted that the nationalization of Glitnir Bank would finish Stodir off and have serious consequences for Baugur.
Jóhannesson admits that Stodir’s potential bankruptcy would have a negative impact on Baugur, but he believes a moratorium will give owners time to prevent bankruptcy.
Jóhannesson pointed out that the economic situation is unstable all around the world and that it is not wise to make definite claims about anything at the moment.
Click here to read more about the state’s acquisition of 75 percent in Glitnir Bank.