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First bankruptcy over FX loans

So the first financing company, Askar Capital, has gone bankrupt in the wake of the Supreme Court’s recent ruling that loans indexed to foreign currencies are, and were, illegal.

Askar Capital is the parent company of car financing company Avant. A winding-up committee has now taken over Avant and has three months to work out whether it can save the subsidiary from bankruptcy.

According to the Consumers’ Ombudsman, it is very likely that those who have already paid an amount in excess of what they are obliged to pay in light of the recalculated loans will not reclaim their money.

And if you’re totally confused as to what this post is all about, you can click here for background.

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  • andy July 14, 2010, 2:09 pm

    Askar will get a new kennitala and hit the creditors at the same time, whilst taking over o/s debtors. Phoenix like it sghall arise into Neu Iceland

  • kevin oconnor,waterford ireland July 14, 2010, 2:57 pm

    Yet more financial confusion does this mean that everyone who got a car loan gets free motor john as the company is now null and void, wow I wish I had got a loan off them for a top of the range SUV,air con,cruise control,electric windows all the trimmings, but luckily I get to hijack my nieces Peugot 206 as she has departed to New Zealand today should be over Spain by now, thank you Icelanders for holding off with that volcano, I was getting worried as it had been emitting steam again. Now with an automobile should assist my employment/self employment prospects a lot and I will be able to get more pesos for my trip to Iceland whenever, as unemployment does not cover luxuries like trips to Iceland, tedious I know but there you have it.

  • hildigunnur July 14, 2010, 4:33 pm

    Kevin, ‘fraid not – someone will buy their outstanding debts 🙁

  • Michael Lewis July 14, 2010, 6:28 pm

    @Kevin
    “Yet more financial confusion does this mean that everyone who got a car loan gets free motor john as the company is now null and void”

    No, the loans are an asset and would be sold by whomever is handling the bankruptcy to some company that wants to take them on.

  • kevin oconnor,waterford ireland July 14, 2010, 6:34 pm

    @hildigunnar oh no !!!, If it seems to good to be true then it most definitely is, still gave me a nice warm cozy feeling for a while, I hate reality big style.

  • kevin oconnor,waterford ireland July 14, 2010, 9:04 pm

    @John lewis loan sharks at % , people that can not afford things will never be free comrade citizen.