Landsbanki Payment Received

Wyre Forest District Council has received the first dividend payment from the Icelandic Bank Landsbanki. The value of the payment is over £930,000, and follows the decision last year from the Icelandic Supreme Court to uphold the Council’s “priority” creditor status in relation to the treasury deposits with the Icelandic Bank Landsbanki.

This represents the first instalment of the £3 million deposit that the Council had with Landsbanki when the bank collapsed in 2008. The Council expects as much as 98 percent of the total to be recovered. Following the recent announcement about the sale of Iceland Foods, in which Landsbanki has a large stake, further cash is likely to be recovered over the coming months.

John Campion, Leader of the Council said

“To receive the first dividend of around a third of our investment is fantastic news for the Council and the residents we serve. This is the result of hard work and we are absolutely delighted that we have been able to recover a large amount of the money we are owed by Landsbanki. We will continue to work with the Local Government Association and the bank’s winding up board to expedite the remaining payments.”

Issued on - 21st February 2012