LBI loses its rescission case against LGT Bank Ltd.
On 11 May 2017, the Supreme Court of Iceland found against LBI in the rescission case against LGT Bank Ltd.
The Court affirmed the ruling of the District Court of Reykjavik and principally the same grounds.
The Court found that the payment appeared ordinary under the circumstances as the terms of the bonds stated that LBI could buy back securities without limitation, that LBI actually did so to a substantial degree between 2006 and 2008. The Court furthermore supports its decision on the basis that financial institutions from routinely purchase their own bonds before maturity.
Cost is not awarded to either side.
LBI is currently reviewing the effects of Supreme‘ s Court ruling on remaining 18 voiding/bond buy-back cases.