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Kaupthing collapse keeps yachts hanging
27.04.09
A host of wealthy individuals who ordered new yachts could be left empty-handed in the wake of the collapse of Icelandic bank Kaupthing.
The private banking arm of Kaupthing, Singer & Friedlander, the bank's UK business, lent more than £200 million to customers to buy yachts before it went into administration in October.
As administrators, Ernst & Young has pulled the plug on £90 million of those payments — meaning dozens of yachts will be left unfinished. “This was thought to be the appropriate strategy on the basis that there was uncertainty as to whether any further funds would be recovered,” Ernst & Young said.
