Former employees of Kaupthing Bank are personally responsible for loans that they took to buy shares in the bank before it collapsed, as ruled by Reykjavík District Court yesterday in the case of two former employees against the bank’s winding-up committee.
Copyright: Icelandic Photo Agency.
One of the employees is to repay ISK 642 million (USD 5.6 million, EUR 3.9 million) and the other ISK 27 million (USD 236,000, EUR 165,000), Morgunbladid reports.
The court concluded that the disallowance of the responsibility for the loans with a declaration made by former bank director Hreidar Már Sigurdsson in September 2008 had been a gift.
The winding-up committee’s cancellation of the action was therefore deemed valid. The winding-up committee is preparing around 20 lawsuits because of it.
Lawyer Gudni Haraldsson said yesterday’s verdict will set a precedent for the remaining cases. The next case will be heard before Reykjanes District Court tomorrow.
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