Norwegian billionaire Alexander Vik has been ordered by the Court of Appeal to return to London to be interrogated about his hidden assets in a long-running legal dispute with Deutsche Bank. The bank has been pursuing Vik for 13 years over a debt that now totals £285 million.
Background of the Case
Deutsche Bank first sued Vik's company, Sebastian Holdings, in 2009 after the firm suffered significant losses on foreign exchange and equities trades during the 2008 financial crisis. The court ordered Sebastian Holdings to pay £203 million in damages plus 83% of legal costs, bringing the total claim to £285 million. When the company failed to pay, Deutsche Bank pursued Vik personally.
In 2015, Vik was found in contempt of court for lying about his understanding of Sebastian Holdings, which is registered in the Turks and Caicos Islands, and for withholding information about the company's assets. He moved to Monaco after the legal battle began.
Appeal and Court Ruling
Vik failed to overturn the contempt conviction in February 2023, arguing that High Court judge Jane Moulder was wrong to convict him. However, the Court of Appeal ruled on Tuesday that it has "inherent power" to compel him to return to London for further interrogation, as the original order was issued in 2015 when he still lived in London.
The court also struck down a previous decision that blocked Deutsche Bank from further interrogating Vik. The judges stated that Vik "has done everything in his power" to avoid paying the debt and that he "lied repeatedly about the whereabouts and nature of Sebastian Holdings' current or former assets, and deliberately failed to provide key categories of documents."
Deutsche Bank's Pursuit
Beyond the initial 14-week trial, Deutsche Bank has made numerous unsuccessful attempts to recover the debt. The bank previously secured a prison sentence for Vik for contempt of court, but it was suspended and ultimately expired. Christopher Robinson, a partner at Fieldfisher and acting solicitor for Deutsche Bank, called the decision "important" and said the bank is "very pleased that the English court has reaffirmed its willingness to take robust action to ensure that court orders are complied with."
The court will soon issue an order for Vik's examination, which will involve a "narrower" round of questioning compared to the 2015 order.
