Straumur Burdaras, Iceland’s biggest investment bank, has announced plans for a special fund to support and develop businesses in Iceland during the current kreppa (recession).
Known as Project Phoenix, Bloomberg reports that the fund could attract as much as EUR 500 million, to help struggling players in industries including food, tourism and insurance.
Straumur CEO William Fell said the bank will itself invest EUR 40 million into the fund. “We’re looking to set up an Icelandic-focused restructuring fund that we hope will attract domestic and international investors and that we’ll seed with our own capital,” he said. “It will help with the restructuring and recapitalisation of Iceland and will look at key industries.”
Straumur Burdaras is the biggest Icelandic bank not to have been taken over by the government in October. Despite announcing third quarter losses this week and seeing total assets contract by a quarter in 2008, Straumur still takes credit for carrying on as normal in today’s unprecedented harsh trading conditions.
The Project Phoenix fund will, William Fell said, be managed from Iceland and have an independent board. The project’s name comes from the mythical phoenix: a bird which burns to death at the end of its life only to be reborn again from the ashes in a near eternal life cycle.
“We’ve been contacted by a number of both domestic and international investors – not vultures but medium and long-term investors – who see opportunities in investing in the restructuring of Iceland,” Fall told Bloomberg. “Some are ready to provide quite significant amounts of money.”
Isn’t it also the name of a CIA project…?
Infiltrations, mind control… a lot of disturbing realities. Once in Vietnam War and now in Kreppa war…
Very unfortunate choice of name!
‘Lend more money to Iceland’
That will be popular.
Until the corporate governance issues are sorted out, then a very high level of due dilligence is required for prospective investors, due to the concentration risk inherent in current structures and queries over valuation issues.
‘Phoenix’eh? – guess it sounds more romantic than ‘Dead Duck’
“CIA project” —> God damned people just found out that Icelandic terrorism is State sponsored !
Mouuuua mouaaaaaaaa mouaaaaa
Virgile – >>people just found out that Icelandic terrorism is State sponsored!<<
You are clearly very upset about this issue, and it has been well covered in other threads where you have participated – especially – ‘UK anti terror laws right move against Icelandic banks?’
All parties need answers – and when we are in possession of the facts – your distress may be justified….or perhaps not!
Try to look for this adress on webarchives…. http://www.opsi.gov.uk
funny..eh..
INDIGO POWER
Phoenix was a mythical bird that dies in flames and is reborn from the ashes.
Terry you seem to be really well informed on all these matters for a part time worker in a bubble gum factory,,whats your secret…
Codman62 – Question: ‘Terry you seem to be really well informed on all these matters for a part time worker in a bubble gum factory,,whats your secret’
Answer: Not taking oneself too seriously – you should try it! :-)
“Isn’t it also the name of a CIA project…?”
It was also the name Swiss banks put on their reform plan for Swissair. This resulted in the airline becoming grounded (ruining its reputation and losing lots of customers), the subsidiary Crossair taking over only part of the operations as Swiss International Airlines, and making huge losses until it was finally bought by Lufthansa.
Well, this could be a possible outcome for this project Phoenix, too. Nothing in the news of the last weeks makes it look as if Icelandic bankers are any better in coping with a crisis than their Swiss counterparts. This Phoenix may be just another Ikarus.