There's bad news for depositors awaiting payouts from the collapsed Kaupthing bank in the Isle of Man.
A court in Reykjavik has ruled that the 'parental guarantee' offered by Kaupthing Iceland, which was supposed to protect those who banked with its subsidiaries, is not valid.
A ruling posted on the bank's website, says the guarantee, signed by the chief executive of the Icelandic bank, was not authorised by the Kaupthing board.
That means the liquidator's claim under the guarantee is rejected and, on the available evidence, the court says senior managers at KSF Isle of Man knew this to be a requirement.
Kaupthing depositors hoping for futher payouts from the liquidator are said to be outraged.
Although 75 per cent of the 10,000 depositors have been fully compensated, thousands more who lost their savings have only received 61 per cent back.
They have been told they will have to wait until 2017 for the proceeds of the bank's liquidation, although the Reykjavik ruling may have dented its final figure.
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