Icelandic tycoon’s London loan lawsuit over

Agust Gudmundsson, commonly associated with the companies Bakkavor and Exista, has reached a settlement, along with his wife, with creditors over a lawsuit brought against them at the High Court in London.

The Financial Times reports that, through Exista, Gudmundsson was one of Kaupthing’s biggest owners, and also one of its biggest debtors.

The High Court case revolved around a EUR 7.5 million personal loan taken out with Kaupthing Luxembourg to buy a ski chalet and plot of land in the French Alpine ski resort of Chamonix. After Kaupthing’s demise, Pillar Securitisation took over Kaupthing Luxembourg’s loan book.

Gudmundsson and his wife, Thuridur Reynisdottir apparently spent all of the loan in November 2007 on the chalet. They currently live in the UK.

When the couple failed to make a payment of EUR 30,000 in November last year, Pillar declared the loan to be in default and called in the remaining EUR 6.5 immediately. When the couple failed to pay the money, court proceedings followed.

Although specific details are not being made public, it is understood that the matter has now been resolved and the court case is over. In a separate case in 2008, brothers Agust and Lydur Gudmundsson were also lucky enough to forge a deal with creditors that allowed them to retain control of Bakkavor. Bakkavor is an international food processing company with very significant operations in the UK.