Legal action could delay Iceland repayment to UK

Bondholders in Landsbanki, Kaupthing and Glitnir are arguing it is unlawful they were relegated behind depositors in the queue of creditors as part of emergency legislation during the Icelandic financial meltdown in 2008.   According to the Guardian, any litigation could frustrate the Treasury's efforts to persuade Iceland to reimburse the compensation it paid to British savers after the collapse of Landsbanki's Icesave internet brand. A group of about 100 heavyweight institutions - including fund managers and banks - are understood to be in the group. Royal Bank of Scotland is tho...