Tycoon’s Media Company to Pay ISK 160 Million Skip to content

Tycoon’s Media Company to Pay ISK 160 Million

By Iceland Review

Reykjavík District Court ruled yesterday that Raudsól, the mother company of 365 midlar, which owns Fréttabladid, visir.is and Stöd 2, should pay ISK 160 million (USD 1.2 million, EUR 1 million) to the bankruptcy estate of Íslensk afthreying.

Jón Ásgeir Jóhannesson. Copyright: Icelandic Photo Agency.

The case revolves around Íslensk afhreying’s sale of 365 midlar to Raudsól in 2008; the majority owner of Raudsól is Icelandic businessman Jón Ásgeir Jóhannesson, former CEO and chairman of Baugur Group, visir.is reports.

The bankruptcy trustee of Íslensk afthreying, Fridjón Fridjónsson, wanted to challenge an agreement on Raudsól receiving an ISK 155 million discount on the acquisition price of 365 midlar.

Raudsól was supposed to submit ISK 1.5 billion (USD 11.4 million, EUR 9.6 million), while the acquisition price was ISK 5.9 million (USD 45 million, EUR 38 million). However, Raudsól only submitted ISK 1.340 billion, with the remaining amount being considered a discount.

Fridjónsson objected to these proceedings, pointing out that when the acquisition occurred, the same people were acting as key executives on the boards of Íslensk afthreying and Raudsól. The discount was therefore in fact a gift.

Reykjavík District Court agreed to these arguments and ruled that Raudsól should pay back the discount. Hilmar Gunnarsson, the lawyer representing Raudsól, told visir.is that the verdict will be appealed.

According to ruv.is, Jóhannesson says the acquisition methods had been taken to save the media conglomerate from bankruptcy.

Click here to read more about the affairs of Jón Ásgeir Jóhannesson.

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