British council leaders are attending a creditors’ meeting in Iceland to fight for more of their money back from one of the country’s ruined banks, Glitnir.

The local authorities had almost £900m ($1.5bn) of deposits in the country when a trio of its banks closed.

Most of the money was in Landsbanki, which granted the councils priority status, meaning they should get almost all of their money back from it.

But Glitnir has not followed suit. It says creditors must be treated equally.

Equal status theoretically means the authorities will receive less than 30% of the £200m they had on deposit with Glitnir.

So far, barely £100m has been returned from all the banks.

The finance director of the Local Government Association, Stephen Jones, is flying out to Iceland to attend the creditors’ meeting and appeal against the decision.