Stoke-on-Trent City Council have released a statement regarding the Icelandic Supreme Court ruling on Friday which ruled that the deposits of UK local authorities in Landsbanki HF would be given priority status over other creditors.
We are delighted the Icelandic Supreme Court has found in favour of UK local authorities and other UK wholesale depositors.
This judgment means that claims have been recognised as deposits with priority status over other creditors’ claims. This means they will be paid first when it comes to getting their money back and will recover almost all of the money they had on deposit with the failed Icelandic banks.
This decision which comes more than 3 years after the banks failed is a huge victory. The way in which the LGA and our legal advisors have co-ordinated the legal action with other local authorities / [other] universities and other UK wholesale depositors has minimised legal costs whilst enabling us to advance the strongest possible arguments to secure this result. The cost of the litigation to date amounts to less than 1 per cent of the amount we expect to recover.
While Stoke-on-Trent is not a test case this is a vital step forward to securing our claim.
The Supreme Court ruling Securing priority status for UK Wholesale Depositors in the administrations of [Landsbanki [and] Glitnir] and could save council taxpayers as much as £4701 million nationally.
Stoke-on-Trent City Council missed the opportunity to withdraw £3m of the £5m deposited with Landsbanki in 2009 because the warning E-mail sent to the City Council by its Credit Agency was not opened. The Audit Commission investigated at the time, agreeing that it was a ‘genuine mistake’