Council recovers the majority of its Icelandic investment
Some good news has been received by Cornwall Council on its ‘investments’ in the Icelandic Landsbanki Bank deposits. This means that the authority has now recovered 93% of the £9m that was originally deposited with Landsbanki in 2008 and is no longer a creditor of the bank.
The way the Council has recovered this amount is by selling its claims against the insolvent estate of Landsbanki. The price at which the claims were sold was based on a reserve price set by the Cabinet on the basis of legal advice received from the solicitors commissioned by the LGA to work on behalf of all Local Authorities to lodge a claim on the estate, and financial advice procured by the Local Government Association, independent treasury advisors and its own professional analysis of the financial position.
Further good news is the proceeds of the sale were paid in cash in Pounds Sterling and these funds have already been received by Cornwall Council. In an ideal world it would have been great to recover all the monies, however, not settling could have resulted in less money being recovered. So I very much welcome this news.