Kaupthing staff agree to share buying loan repayments

A majority of the former Kaupthing Bank employees who were originally let off repaying loans used to buy shares in the bank, pre-collapse, have now made a payment deal with its resolution committee.

Collectors are now pursuing those former employees who have refused to make a repayment deal — including some of the bank’s former top management, RUV reports.

Personal responsibility for the loans amounts to ISK 15 billion (over EUR 91 million) between 80 former Kaupthing people. The resolution committee decided to reverse the bank board’s decision shortly before it went bankrupt to write off the loans and initiated 60 legal cases to gain court support for reversing the decision.

Four cases have been judged on in district courts, all in favour of the resolution committee. Two have, however, been appealed to the Supreme Court.

Feldis Oskarsdottir, from the Kaupthing resolution committee, says that around 50 of the 80 have agreed to repayment terms, pending the Supreme Court of Iceland’s final verdict. Proceedings have now begun against the others who have not signed such agreements and have shown no interest in doing so. The proceedings include the freezing of assets, including houses, summerhouses, other real estate, shares and savings.

Oskarsdottir says that repayment terms are different for each of the former employees, based on their ability to pay. Not all of the ISK 15 billion will be recovered, she adds. She went on to confirm that most of the highest executives of Kaupthing, who took the largest loans, are not among the 50.

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