Administrators Clear Larger Amagerbanken Payout
The remnants of Danish bank Amagerbanken, which fell into state hands in February, will be allowed to distribute additional funds to eligible creditors, administrators of the failed bank said on Thursday, Reuters reported. Finansiel Stabilitet, the state company that manages failed banks in Denmark, said a new valuation of Amagerbanken's assets and liabilities provided a basis for increasing payouts by about 6.7 billion Danish crowns ($1.27 billion). In connection with the transfer of Amagerbanken to Finansiel Stabilitet, unsubordinated creditors whose claims were covered neither by the Danish Guarantee Fund for Depositors and Investors nor by an individual government guarantee were paid a preliminary dividend of 58.8 percent. Subject to a court ruling or other decision confirming the auditors' valuation of the assets, the dividend rate will be increased to 84.4 percent, with the possibility of a further increase, Finansiel Stabilitet said in a statement. It said the new estimated payout was based mainly on an increase in the value of assets of 2.4 billion crowns, dissolution of an intermediate account for 3.4 billion, and fewer claims from creditors amounting to 1 billion. Read more.