31/10/11 Kent County Council - Icelandic court victory

The Icelandic Supreme Court has confirmed Kent County Council’s status as a preferred creditor for its deposits with Icelandic banks.

This was the final stage of a three year process to recover KCC’s deposits and the expected level of recovery is now 100% from Glitnir and 98% from Landsbanki. Very substantial dividend payments are now expected in a matter of weeks.

Under Icelandic law depositors are preferred creditors and they should receive a full payout before any other creditors are paid.

KCC Cabinet Member for Finance, John Simmonds, said: “I’m delighted that the waiting is now over and, as we’ve maintained all along, KCC will get most if not all of its deposits back. The return of these funds is very welcome at a time of real financial challenge for Kent.

“I’d like to pay tribute to KCC’s Head of Financial Services who has played a leading role in the negotiations on behalf of the 123 UK local authorities which had money deposited in Icelandic banks.”

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