🇮🇸 Iceland
22 October 2025 at 05:30
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Business

Magnús Bankruptcy Case Reopened After 16 Years

An Icelandic businessman's bankruptcy case has reopened 16 years after his initial collapse. Magnús Þorsteinsson was part of the group that bought Landsbankinn before Iceland's financial crisis. The trustee will discuss distributing newly discovered assets on November 3.

Magnús Bankruptcy Case Reopened After 16 Years

The bankruptcy estate of Icelandic businessman Magnús Þorsteinsson has been reopened after 16 years. Magnús was among the group that purchased Landsbankinn before Iceland's 2008 financial collapse.

His bankruptcy trustee has called a meeting to discuss additional distribution of assets. The session will take place at the trustee's office on November 3.

Magnús originally declared bankruptcy in May 2009. The case concluded in March 2017 after eight years of proceedings.

Icelandic law allows bankruptcy cases to reopen if new assets are discovered. The trustee can then propose additional distributions to creditors.

This development shows how Iceland continues dealing with fallout from its 2008 banking crisis. Some bankruptcy cases remain active years after formal closure.

Why reopen a case closed six years ago? New assets likely emerged that weren't available during original proceedings.

The trustee will present a draft distribution plan at the November meeting. Creditors may receive additional payments if the proposal is approved.

Published: October 22, 2025

Tags: Iceland bankruptcy case 2024Magnús Þorsteinsson bankruptcyIceland financial crisis assets