| Milestone hanging by a thread |
| Sunday, 15 February 2009 18:02 |
 There are considerable chances of that the Swedish financial supervisory administration will take over tomorrow the holdings company Milestone which is owned by the brothers Karl and Steingrimur Wernersons. There companies like the insurance company Sjova, and Avant will hear under the Swedish administration.
Moderna is the name of a subsidiary of Milestone which is registered in Sweden. Moderna owns amongst other the insurance company Sjova and the investment company Askar Capital which amongst others owns the financing company Avant. The debts of Milestone around the new years were thought to be over 100 billion krona, but the assets at the same time only 60 billion krona. The Swedish FSA has maid a claim of the owners of Milestone to insure that Moderna pays it´s dues, and more, deposits high amounts of funds into the accounts of Moderna in Sweden, tagged for certain debts. It is the liquidating committee of Glitnir which rules the Milestone and it has made the Swedish FSA an offer to deposit a certain amount to the account of Moderna and so try to work with them on the claims. Arni Tomasson chairman of the liquidating committee of Glitnir did not want in a conversation with the newsroom specify how much funds there will be put into this but it is said to be enormous. Tomorrow is the deadline which the Swedish FSA had to make a decision about if this payment will due. Arni says it is very unclear if the Swedish FSA will accept the offer. It is really just as likely that the Swedish FSA takes over the companies. It has the wide authorization to trade the governments and governors, and arrange them as it pleases. So it could sell the companies to pay the debts for the price that would be possible to get. It is clear that the purchase price would be low. The liquidating committee of Glitnir has requested to take over the companies and solve these matters on it´s own. According to the sources of the newsroom have most of the claim owners been positive about it as well as the Icelandic government, but the Swedish FSA is not positive about that. The loss of Glitnir could add up to tens of billions if it goes so that the Swedish FSA takes over the govern of the companies and sells them.
News Article by noname Translated by Anya Original Article in Icelandic
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