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Article: Kaupthing bank had lent main Bakkavor shareholders 1.5bn [euro].(news)(Agust Gudmundsson and Lydur Gudmundsson from Bakkavor Group HF)(Brief article)
- Article from:
- Grocer
- Article date:
- August 8, 2009
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Leaked documents have revealed Bakkavor and its main shareholders--CEO Agust Gudmundsson and chairman Lydur Gudmundsson--owed Kaupthing more than 1.5bn [euro] just before the bank's collapse.
The internal record leaked to whistleblowing website Wikileaks reveals the risky lending practices of Kaupthing--in which the Gudmundssons were also the largest shareholders--at the time of its failure.
It had lent l.4bn [euro] to the brothers' holding company Exista, through which they controlled both Bakkavor and Kaupthing, and 115.3m [euro] to Bakkavor itself, These loans were largely unsecured--and had no covenants.
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