Reykjavik’s District Court rejected a motion by Credit Suisse International (CSGN) to gain priority for a 24.3 million euros ($30.4 million) claim in the wind-up process of failed Icelandic lender Kaupthing Bank hf.
Kaupthing failed with the rest of Iceland’s largest lenders in October 2008 after it was unable to secure short-term financing. Credit Suisse’s claim was classified as a “remainder” claim by the caretakers of Kaupthing and the bank sued, demanding a re-classification to gain a higher priority in the process.
The Swiss bank’s claim was denied since the terms of the bonds in question “clearly state that they are subordinate to all other claims” according to the ruling.
