An Icelandic court ruled that a former executive of failed lender Kaupthing Bank hf must repay loans given to him by the lender to buy its shares.
Ingolfur Helgason, the ex-head of Kaupthing’s Icelandic operations, is personally liable for the 1.1 billion-krona ($9.5 million) loan the bank extended to him for purchases, according to the ruling announced today by the Reykjavik District Court.
Less than two weeks before Kaupthing’s failure in October 2008, its board sought to revoke personal liability on loans given to a number of employees in connection with purchasing stock in the bank. The decision followed a drop in the lender’s share price.
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