AIG to pay NOK 93 million to the municipalities of Terra

The verdict was rendered Monday at the Oslo District Court, according to the Rana Municipality.

According to the judgment, AIG has to pay 50 million Norwegian kroner, as well as deferred interest rates of ten years, for about 43 million Norwegian Kroner. on the investments made by the brokerage firm Terra Securities in 2008. The eight municipalities bought US municipal bonds

– The sale should not have been completed

In the stop , it is stated that the risk was too high for very complicated products, and that Terra Securities ASA should not sell them to the municipalities and that the sale should not have been completed.

"It was assumed that it was sold to a sophisticated institutional or institutional investor.Municipalities are not part of such a group", writes district court judge Dagfinn Grønvik in the sentence of 48 pages

The municipality of Hattfjelldal in Nordland has been awarded costs in the case on behalf of the eight municipalities. Most at the municipality of Bremanger

If the distribution is made as in the previous cases corresponding, the compensation and late interest will be divided as follows: Hattfjelldal NOK 8.9 million, NOK 8 million, 13 Narvik 2 million NOK, 14.9 million Rana, 17.2 million NOK from Bremanger, 12.7 million NOK from Haugesund, 7.1 million NOK from Kvinesdal and 10.4 million Norwegian kroner

. Power municipalities lost huge sums when they invested future revenues according to the advice of Terra Securities mediators. In a judgment of the Borgarting Court of Appeal, the insurance company ACE European Group Limited was ordered to pay the eight municipalities 50 million Norwegian kroner in compensation, as well as interest for late payment. rising to around NOK 80 million. The municipalities filed a lawsuit against the insurance company of Terra Securities after the bankruptcy of the brokerage firm.