Eik case postponed

The case against the former Eik Bank management will be shelved until legal proceedings regarding the Danish arm of Eik Bank are complete.

Financial Stability – established in October 2008 as part of an agreement between the Danish State and the Danish banking sector to secure financial stability – instituted proceedings against the former Eik Bank, accusing the management of being responsible for the bank’s bankruptcy in autumn 2010.

The procedure regarding the Eik management was scheduled for this morning, tomorrow and Wednesday, but the courtroom was empty when KVF showed up this morning.

The case has been postponed until 27 August. The reason is that the case regarding the Danish arm of Eik Bank, which has been taken to the High Court, has now become less substantial, and the parties involved now wish to complete the Danish case first.

“The parties wish to postpone the matter,” says Peter Flügge, who is one of the judges in the case regarding the management of the former Eik Bank.

“There has been a change in the argumentation in a similar case in High Court where the number of witnesses has been considerably reduced. This means that the High Court case will probably be dealt with earlier than expected. One condition for this is that the Faroese court case is postponed,” says Flügge.

The postponement of the Faroese case does not, however, mean that the court ruling will be delayed.

The Danish case will be completed in August, and then the parties in the Faroese case will be better able to focus on their case, adds Flügge.