With hindsight, the episode looks all the more uncomfortable because of Kaupthing’s complex relationship with Tchenguiz. He was not just its largest customer but also led a series of private equity-style joint-venture deals in which Kaupthing co-invested its own money. Moreover, in early 2007 he became a major investor and board member in Exista, an Icelandic holding company which was the largest shareholder in Kaupthing.

Among the Tchenguiz-led joint ventures in which the bank invested its own money were retailer Somerfield and bar and restaurant companies behind chains including Yates, Slug & Lettuce, La Tasca, Ha! Ha!, Hogs Head and Litten Tree. The bank also had a investment interest in Tchenguiz’s stake-building at J Sainsbury and M&B.

From the Guardian

Related posts:

1. Tchenguiz trust hit with £180m lawsuit
2. Tchenguiz’s Bay Group secures debt-for-equity restructuring
3. Crooked deals at old Kaupthing
4. Following up Baugur turns into a bit of a saga
5. From Wikileaks – Confidential exposure analysis of 205 companies each owing above EUR45M to Icelandic bank Kaupthing, 26 Sep 2008