Bank's three-year stuggle ends in bankruptcy
Country's 11th largest bank will now be taken over by state
Amagerbanken yesterday filed for bankruptcy. The bank has now been taken over by the Financial Stability Company, the government body responsible for liquidating cracked banks.
The decision follows the publication of the bank’s 2010 annual report, which showed devaluations of three billion kroner.
The bank’s equity on September 30 was 2.4 billion kroner. At the end of the year, it had debts of 654 million kroner.
Amagerbanken is the country’s 11th largest financial institution and has been close to bankruptcy several times over the past two and half years. Each time, however, it has been bailed out by investors.
One of those investors is billionaire Karsten Ree, who has pumped 800 million kroner into the now-failed bank.