Council recovers money invested in failed Icelandic banks

Shropshire Council says it has now recovered 92% of the £1 million that was originally deposited with Landsbanki in 2008 by the former Bridgnorth District Council.

The council sold its claim against the insolvent estate of Landsbanki through a competitive auction process.

The price at which the claim was sold was based on a reserve price set by the council on the basis of legal advice received from Bevan Brittan, 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.

Mike Owen, Shropshire Council’s Cabinet member, said: “We are obviously delighted to have recovered a very large portion of our Landsbanki deposit in full. The sale of our claim represents a clean break, and the council is no longer a creditor of the bank.”