Magma Hasn't Yet Paid for HS Orka - The Reykjavik Grapevine

Magma Hasn’t Yet Paid for HS Orka

Published August 16, 2010

Magma Energy has yet to make the final payment for HS Orka, Eyjan reports, pending a decision from the government on the sale’s legality.
The payment, which was supposed to have been made at the end of last month, has not been delivered, due to the Icelandic government’s decision to not recognize the sale, but instead assemble a committee to further investigate how legal Canadian-based Magma Energy’s use of a Swedish puppet company to make the purchase was.
Lately, Magma’s position has been a lot shakier, as persistent criticism from high-profile figures such as artist Björk Guðmundsdóttir and Icelandic politicians, to both foreign and domestic press, has had investors wondering.
“We do not want to walk away,” Magma CEO Ross Beaty told the Financial Times recently. “But we have shareholders who are getting pretty frustrated with what’s happening. We are being made a scapegoat for all the bad business practices leading up to the financial meltdown and the tremendous fear and mistrust it created.”
Another part of that mistrust, of course, is that Magma lied to us.


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