A UK High Court judge ruled on Wednesday that British tycoon brothers Robert and Vincent Tchenguiz, who were among the Icelandic bank Kaupthing’s largest borrowers at the time of its collapse in 2008, can sue the bank for GBP 1 billion (ISK 186 billion, USD 1.6 billion, EUR 1.2 billion) in damages because the bank seized their assets to secure the loans.
Copyright: Icelandic Photo Agency.
According to the BBC, Kaupthing had brought a “strike-out” action in a bid to block the legal challenge by the Tchenguiz brothers. Their previous attempt to sue the bank was dismissed by Icelandic courts.
In a statement on its website, Kaupthing said it does not accept the court’s decision, claiming it was made on “technical grounds”, reasoning that whether the bank is liable to the brothers’ assets is not a matter for UK courts to decide.
The brothers were briefly arrested and questioned by the British police earlier this month as part of the Serious Fraud Office (SFO) and the Icelandic Special Prosecutor’s investigation of the bank’s collapse.
Robert Tchenguiz is considering suing the SFO because of the arrest.
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