Baugur goes into administration

Baugur, the troubled Icelandic investment company, has filed for bankruptcy a
month after its valuable shareholding in the UK high street was placed into

the wake of BG Holdings being ring-fenced
Baugur said yesterday it had no
choice but to file for bankruptcy after the District Court of Reykjavik refused
its petition for an extension to the company’s moratorium, which stops creditors
blocking asset sales.

Kristin Johannesdottir, chairman of Baugur Group, said: ‘The court’s ruling
today is a disappointment to everyone at Baugur. We believe that the company
fulfils all the conditions for the extension and that the restructuring plan was
viable. However, following the ruling, we have no choice but to file for

Baugur management and employees have been working hard to save the company’s
assets in cooperation with its creditors since the collapse of the Icelandic
banking system in October 2008, the company said.

‘The board of directors of Baugur Group would like to express gratitude to
the employees and everyone else the company has had the pleasure of working with
in recent years.’

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