Nineteen creditors of Byr Savings & Loan, including largest shareholders German banks HSH Nordbank and Bayerische Landesbank along with Austrian bank RZB have rejected their claims being turned into shares. Instead they will discount their claims provided they are paid parts of them.

Byr has asked the state for 10.6 billion ISK injection which would make it owner of 50% of the S&L.

Byr’s customers must rejoice, for of course if Byr’s outstanding debts to its creditors are discounted then that must be reflected in the outstanding debts owed to the S&L. Won’t it?

Well maybe not while the guardians of the “fortress of the banks”, Gylfi Magnusson and Steingrimur J. Sigfusson are in charge.

Oh, and while we are on the issue of Byr, remember Karen Millen? Oh, and Ragnar, remember him?

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