Bloomberg News

Ex-FL Group CEO’s Company Declared Bankrupt by Iceland Court

December 30, 2011

Dec. 30 (Bloomberg) -- FI Investments ehf, a company created by former FL Group hf Chief Executive Officer Hannes Smarason, was declared bankrupt by the Reykjavik District Court.

The company, formerly known as Primus Investments ehf, was declared bankrupt on Dec. 16, according to a journal containing legal decisions published today by the government.

By the end of 2007, FI Investments took out two loans totaling 4.7 billion kronur ($38 million) from failed lender Glitnir Bank hf, a Special Investigative Committee appointed by the Reykjavik-based parliament found in April last year.

Smarason personally guaranteed 400 million kronur when the loans were granted.

--Editors: Jonas Bergman, Meera Bhatia

To contact the reporter on this story: Omar R. Valdimarsson in London at valdimarsson@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net


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