Tchenguiz duo to sue in Iceland

By SIMON WATKINS, MAIL ON SUNDAY FINANCIAL DEPUTY EDITOR
Updated: 21:22 EST, 3 April 2010

One-time property billionaires Vincent and Robert Tchenguiz are expected to launch legal actions against the rump of failed Icelandic bank Kaupthing after their claims to be owed more than £2billion were flatly rejected last week.

Robert Tchenguiz had claimed to be owed 127billion Icelandic kronur (£659million), mostly due to losses incurred when his shares in various British businesses, including Sainsbury's and pubs group Mitchells & Butlers, were seized and sold by Kaupthing.

His brother, Vincent, had claimed to be owed £1.64 billion in damages caused by the collapse of his various business interests because of the Kaupthing failure.

The Tchenguiz brother claims total £2.3billion

But the Icelandic government-appointed resolution committee which, like a British administrator, is in charge of the affairs of the bankrupt Kaupthing has now rejected both claims.

A source close to the brothers confirmed that their claim had been turned down and said the only course left to them was to sue in Iceland.

Their claim, which totals £2.3billion, is just one aspect of the tangled links between the Tchenguiz brothers and Kaupthing.

Documents leaked last year also showed that the brothers received huge loans from Kaupthing, with Robert borrowing £1.5billion and Vincent £190million.

Kaupthing sold Robert Tchenguiz's stakes in Sainsbury's and M&B as part of its efforts to recover his loan.

To confuse matters further, the brothers were also shareholders in Kaupthing and Robert was also a director of another Icelandic company, Exista, which was the majority shareholder in Kaupthing.

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