Tycoon Agrees on Debt Settlement with Creditors Skip to content

Tycoon Agrees on Debt Settlement with Creditors

The Icelandic entrepreneur Björgólfur Thor Björgólfsson has made an agreement with his creditors on the settlement of his debts, which amount to almost ISK 1,200 billion (USD 9.7 billion, EUR 7.6 billion)—double the national budget of the Icelandic state, which is ISK 555 billion this year.

Björgólfur Thor Björgólfsson. Photo by Geir Ólafsson.

Björgólfsson will continue to hold shares in companies such as Actavis, Play, CCP and Verne Holding but the profits from his shares will be used to pay his debts. The same applies to the sale of his personal assets, including a house in Reykjavík and a summer house at Thingvellir, Fréttabladid reports.

Along with the debt settlement an agreement was made on the financial reorganization of the pharmaceutical company Actavis. Björgólfsson will remain the company’s leading shareholder and will continue to have a seat on its board.

Björgólfsson said in a statement that he will spend the next few years working for his creditors. He said he is satisfied with this situation as it was always his plan to honor his obligations, stressing that no debts will be written off.

“I have always considered that when I have traded with high amounts for my personal gain I cannot walk away from trade without any personal repercussions when everything goes the worst possible way,” the tycoon said in his statement.

“In the past years I made many decisions that I considered sensible and right at that time. I’m referring to the fact that nothing has come to light which has provided a reason for a lawsuit against me or caused the breaking of agreements,” he stated.

“On the contrary, the media has not reported on any such cases, neither at Landsbanki nor at Straumur. I am positive that it won’t happen because I believe I haven’t violated any laws,” Björgólfsson continued.

“I have apologized to the Icelandic nation for my obvious mistakes in the events leading up to the collapse of the Icelandic banking system. I’d like to iterate that apology,” he concluded.

Click here to read more about Björgólfsson’s apology.

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