Guernsey

Landsbanki Guernsey goes into liquidation

The Guernsey arm of an Icelandic bank placed into administration in 2008 due to the collapse of its parent company has gone into liquidation.

Guernsey's Royal Court agreed the former administrators be appointed as liquidators on Tuesday.

More than 1,600 people had money deposited in Landsbanki Guernsey when it collapsed, around a third of whom were living in the Channel Islands.

Savers have so far received up to 67.5p in the pound back from their deposits.

The liquidators, Richard Garrard and Lee Manning, said after a further payment of up to 7.5p in the pound early in 2011 there would be one further payment.

Depositors have campaigned for the States of Guernsey to make up any shortfall and also referred their dispute to the Icelandic courts.

During the hearing the Guernsey Financial Services Commission said Landsbanki Guernsey had to surrender its banking licence because it had insufficient capital to be licensed.

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