Don’t you just love the internet? This just in from Wikileaks.org, analysis of 205 companies owing more than 45 million Euros to Kaupthing on September 26, 2008.
Finnur Sveinbjornsson, Kaupthing CEO and its management tried to stop the leak, asking Wikileaks to take this off the site, saying that the informantion is not relevant to the Icelandic public.
Yeah right!
The same day this presentation was discussed within Kaupthing, the board cancelled the personal responsibilities of key staff because of loans for shares, 25. September.
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Vilhjalm A.
2 years ago
You can see why Kaupthing management didn’t want this report to be released. A large portion of the loans went to the “usual suspects”, Exista, Gaumur/Baugur, Kjalar (owned by Olafur Olafsson), Stodir, etc and their English “friends Tchenguiz, Kevin Stanford and Karen Miller etc. Tchenguiz was one of the largest recipients.
Needless to say, most of the insider loans are probably now junk status, mostly worthless. Shares in Exista and Kaupthing – completely worthless. Real estate loans in the UK – deduct 50%. English retail and restaurants – mostly worthless. Icelandic companies – mostly worthless.
They did seem to make some reliable loans to responsible companies, mostly in Scandinavia. So maybe 25%-35% is recoverable. Unfortunately, the bad loans to the insiders overwhelm the good loans.
You can also see why the bank committee and Icelandic government wants to give the entire bank, new and old Kaupthing, to the creditors. The real value, the good loans, already belong to Old Kaupthing, so the foreign creditors automatically get that. The New Kaupthing loans (=bank assets), in Iceland, are mostly worthless, so you might as well give them to the creditors too. Good luck to the new and future creditor-appointed bank committee in trying to collect on that junk.
Icelanders need not worry about foreigners gaining valuable Icelandic assets from Kaupthing. A lot of the Icelandic assets pledged as collateral are undeveloped or unfinished real estate, some retail Icelandic stores and exporters, a bit of downtown property, some trawlers, and the Keflavik operator. Not much, if any, of quotas or energy rights.