Wholesale Depositor Supreme Court Judgment

The Supreme Court of Iceland has today handed down its judgment on the wholesale depositors’ priority claims in both the Landsbanki and Glitnir cases. For Glitnir, there were two specimen claims made by its creditors.

In summary, the Supreme Court upheld the judgment dated 1 April 2011 of the Reykjavík District Court which had decided that the specimen claims of Glitnir’s wholesale depositors do have priority status under Article 112 of Act No. 21/1991 on Icelandic Bankruptcy. The objections made by the relevant creditors to the Winding-up Board’s decision on the two specimen claims have therefore been upheld.

The Winding-up Board is considering the judgment and its applicability to other claimants seeking priority in the winding-up of Glitnir.