November 15, 2018 / 7:46 PM / a month ago

UPDATE 1-Defaulted Nordic power trader reaches agreement with creditors

(Adds lawyer comments, expected recovery)

OSLO, Nov 15 (Reuters) - Norwegian power trader Einar Aas has reached an agreement with creditors, including Nasdaq Clearing, after his default in September forced members of the clearing house to stump up around 100 million euros ($113 million) to cover his losses.

Nasdaq Commodities, which operates the Nordic power exchange, said on Thursday that Aas had agreed to sell his assets to help the clearing house and its members recover the money they had to put into a default fund.

It said proceeds from the assets would be distributed to participants of the default fund on a pro rata basis, but did not estimate how much the assets might raise.

Aas’ lawyer Marius Moursund Gisvold told Reuters Aas will have to sell properties in Norway and Spain, but will keep his house in Norway, avoiding personal bankruptcy.

In exchange, Aas agreed not to file any counter claims against Nasdaq as part of the deal, his lawyer added.

One member of the clearing house, Norwegian power firm Agder Energi, disagreed with the deal, but has decided not to raise further objections, Nasdaq Commodities added.

“We can confirm that a legally binding agreement for a consensual arrangement with creditors has today been finalised between Mr. Aas and his creditors, including Nasdaq Clearing,” Nasdaq Commodities said in a statement.

A source familiar with the deal told Reuters the recovery of the creditor claims was expected to be around 50 percent.

Aas’ lawyer declined to comment on the size of the settlement.

Nasdaq Commodities and Nasdaq Clearing are both part of U.S. exchanges operator Nasdaq Group.

Aas’ default raised questions about how one private trader could cause such a big loss, and whether existing rules are sufficient to prevent such incidents in future.

$1 = 0.8827 euros Reporting by Nerijus Adomaitis; Editing by Mark Potter and Alexandra Hudson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below