Collapsed Icelandic bank settles Qatar dispute

  • Share via facebook
  • Tweet this
  • Bookmark and Share

The estate of a bankrupt Icelandic bank has said it had settled a dispute with a Qatari sheikh which stemmed from a deal the sheikh made to buy shares in the bank just before it collapsed in 2008.

All three of Iceland's top banks collapsed under big debts when the global credit crunch struck in late 2008.

Weeks before the collapse, one of the banks, Kaupthing, announced that Sheikh Mohammed Bin Khalifa Bin Hamad al Thani of Qatar had bought 5.01 percent of its shares in a confidence-boosting move. But a parliamentary commission later said the shares were bought with a loan from Kaupthing itself.

The winding-up committee of the Kaupthing estate revealed for the first time in a statement on Friday that it had taken legal proceedings against the sheikh and subsequently settled with him.

It provided no details of the settlement with the sheikh nor why it had taken action against him. It said only that legal proceedings in Iceland against al Thani had been discontinued. "All other terms of the settlement remain confidential," it added.

No one at the committee was available to comment.

An Icelandic newspaper has reported the winding-up committee wanted to get back some of the loans made for the shares.

The parliamentary commission which investigated the banking meltdown said in April 2010 that Kaupthing lent money to companies owned by al Thani to buy the Kaupthing shares.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: shaq

Why there is no diplomatic immunity. How come the Ruler of Qatar got himself involved in such a loosing proposition.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Should the Gulf introduce VAT?

Should the Gulf introduce VAT?

The GCC’s plans to bring in value-added tax were withdrawn as...

5
Why are some of the world's biggest banks leaving the UAE?

Why are some of the world's biggest banks leaving the UAE?

Large Western banks have been selling off their local assets...

2
How Gulf banks are helping to underwrite region's aviation boom

How Gulf banks are helping to underwrite region's aviation boom

Figures from Airbus show that 47% of MidEast aircraft deals in...

2
Most Popular
Most Discussed