Case pleadings before the District Court on the priority of deposits are concluded

On March 23rd case pleadings before the District Court of Reykjavík in disputes regarding the claims of FSCS and DNB against Landsbanki Islands hf. for the so called Icesave deposits. The disputes of the cases revolved around the priority of deposits and the validity of the Emergency Act as well as whether FSCS and DNB were entitled to default interests and costs. In addition to FSCS and DNB and the Winding-up Board a group of general creditors were parties to the cases which had objected to the decision of the Winding-up Board to recognise the priority of deposits. It should be noted that on last February 23rd case pleadings concluded before the District Court in the seven disputes regarding British and Dutch wholesale deposits which were chosen as test cases. Those cases also addressed the validity of the priority provisions of the Emergency Act but also whether wholesale deposits are considered to be deposits under Act no. 98/1999 on Deposit Guarantees and Investors’ Compensation Scheme. Verdicts in these disputes may be expected in the next few weeks but the outcome of these cases are crucial for the arrangement of disbursements to creditors of the bank.

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