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Iceland Mag

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2 billion dollar personal bankruptcy of former Kaupþing boss is the largest in Iceland’s history

By Staff

  • Sigurður Einarsson The former chairman of failed bank Kaupþing declared bankruptcy in September 2015. He is currently serving a four year prison sentence for market manipulation in 2007-2008. Photo/GVA.

The liquidation of the estate of Sigurður Einarsson, the former chairman of the board of failed bank Kaupþing, has been completed the local news site visir.is reports. Creditors, which included Deutsche Bank and the Icelandic bank, Arion, which was created on the ruins of failed bank Kaupþing. Total claims on the estate exceeded 250 billion ISK, which comes to nearly 2 billion USD.

By far the largest personal bankruptcy in Icelandic history
Only a small fraction of the claims were fulfilled, as Sigurður’s estate was found to be worth only 38.3 million ISK (290,000 USD/270,000 EUR), an amount which pales in comparison to the 254.4 billion ISK claims (1.96 billion USD/1.8 billion EUR). The trustee of the estate described it as worthless in an interview with the local newspaper DV. “As there were no assets in the estate we did not assess the validity of the claims made on the estate. These are simply claims that the creditors believe they have on Sigurður.” Visir.is reports the bankruptcy is the largest personal bankruptcy in the history of Iceland.

Read more: 26 bankers already sentenced to a combined 74 years in prison

Sigurður declared personal bankruptcy in September of 2015. In July he had been ordered to pay more than 700 million ISK (5.4 million USD/5 million EUR) in back taxes on stock options he was given as chairman of Kaupþing. In 2010 the Reykjavík District Court had also ordered him to pay nearly 500 ISK (3.8 million USD/3.5 million EUR) to the estate of Kaupþing due to loans he had received to buy shares in the bank.

Sigurður is currently serving a four year prison sentence for market manipulation in the lead up to the financial crash of 2008.

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