Landsbanki returns £100m of local authority assets
0The Local Government Association has received the first £100m of the £413m UK councils are owed from Landsbanki, the defunct Icelandic bank.
The money is being paid to councils this week. Stoke-on-Trent City Council has received £1.5m of the £5m it is owed and Wyre Forest District Council in Worcestershire has been paid over £930,000 of its £3m.
Said LGA Chairman, Sir Merrick Cockell: “The first £100 million instalment is fantastic news for local authorities and the residents they serve. This is the result of four years’ of hard work on behalf of the sector and we are absolutely delighted that we have been able to help more than 80 local authorities recover a large amount of the money they are owed by Landsbanki.
“We will continue to work with the bank’s winding up board on behalf of our members to expedite the remaining payments.”
Iceland Foods, of which Landsbanki holds a large stake, recently announced its sale, releasing money to be paid to UK councils. The LGA expects as much as 98% of the total owed will be recovered.
The Local Government Association (LGA) has been co-ordinating a legal action on behalf of 80 councils owed money.
