How did the brothers, Agust and Lydur Gudmundsson score the majority ownership of Bakkavor? Well, with a vendor loan from Exista the company Lydur told the nation was heading for a bankruptcy earlier this evening. Which is where the brothers are also the largest shareholders. A vendor loan is basically a fancy way of saying IOU.
Lydur’s comments about people who questioned the sale, “negative comments come from people who don’t know enough about the sale.”
The sale was approved by the board of Exista in October last year. The next day, Kaupthing was nationalized and with it went the largest asset of Exista, which owned 25% in the bank. The sale was approved on the condition that the largest creditors of Exista would have to approve. That does not seem to have been the case and creditors are apparantly trying to get it nullified.
So the big question is, how long are the brothers going to get away with it?
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Kjartan
2 years ago
Stop being so negative!
andy KJ
2 years ago
If they wait a year, I belive that transaction cannot be challenged. Issue of sales at arms length ie they sold asset from entity they controlled to themselves. Exista a major creditor of kaup. and this might be a significant reduction of assets awayy from kaup creditos. One could argue that it is a transfer of funds into Exista and thus to Kaup….but that transaction does not necessarily need an asset sale the other way.