Supreme Court Decision in a Recision Case Against Islandsbanki and Islandssjodir

22.04.2015
As a part of the Winding-up proceedings, the Winding-up Board reviewed whether any bonds issued by BYR or its predecessors had been redeemed prior to maturity.
Those who had been redeemed in 2009 were cancelled by the Winding-up Board and two court cases filed.
 
The first was against Virding hf.  The District Court of Reykjavik ruled in favour of the Winding-up Board on 17 May 2013 and it was confirmed by the Supreme Court of Iceland on 30 January 2014 (case no. 545/2013).  Virding was judged to repay Byr Savings Bank the purchase price, plus interest and litigation cost, or a total ISK 173 million.
 
The second was against Islandsbanki hf. and Islandssjodir hf.  Islandssjodir is an asset management commpany and is 99,7% owned by Islandsbanki.  The Disctrict Court of Reykjavik ruled in favour of the Winding-up Board on 18 June 2014 and it was confirmed by the Supreme Court of Iceland on 22 April 2015.  Islandssjodir was judged to repay Byr Savings Bank the purchase price, plus interest and litigation cost, or a total ISK 210 million.