LBI loses a case against RZB in the UK courts
Ruling against LBI ehf. was passed down today in the UK Royal Courts of Justice in a case between LBI ehf as claimant and RZB (Raiffeisen Zentralbank Österreich AG and Raiffeisen Bank International AG) as the Defendants. The dispute concerned the closeout of GMSLA and GMRA contracts as to both whether default notices were adequately served and then subsequently the appropriate valuation of underlying securities. The conclusion of the ruling is that LBI ehf does not have a claim against RZB. RZB had previously irrevocably withdrawn its claim lodged against LBI in Iceland.
The judgement will reduce previously reported expected recoveries under other assets and will also result in expenses for LBI due to costs awarded to the defendants. LBI will review whether to appeal the judgement.