Robert Tchenguiz and allies owed £1.6bn to Kaupthing, fraud office tells the High Court
THE SERIOUS Fraud Office has begun the defence of its actions following the controversial arrest of property tycoons Vincent and Robert Tchenguiz last year.
SFO counsel James Eadie told the High Court that at the time of Kaupthing’s collapse Robert and companies connected to him owed the bank around £1.6bn.
Robert Tchenguiz owned shares in Kaupthing as well as its largest shareholder Exista, also the bank’s second-largest debtor.
Iceland’s Special Investigation Committee has already noted a big increase in loan facilities to the younger Tchenguiz between January 2007 and October 2008.
According to the minutes of the loan committee of Kaupthing’s board, the bank lent money to Tchenguiz in order for him to meet margin calls from other banks.
Vincent Tchenguiz has already pursued Kaupthing for damages after the bank’s winding-up committee refused to recognise his trust as a priority creditor. He reached a settlement last year.
The brothers this week began a judicial review into their arrests. Neither man was charged and they continue to protest their innocence. The SFO has admitted errors and is reviewing Vincent’s status as a suspect.