October 9, 2008 - 5:57 p.m.

NEW YORK (AP) - Shares of Primus Guaranty Ltd. plunged Thursday after the provider of reputableness protection said it expects to make cash arrangement payments related to Iceland's troubled Kaupthing bank.

Iceland on Thursday suspended trading on its hoard commutation for two days and took have the direction of of Kaupthing, the political division's leading bank — the third bank it has seized — amid global financial uneasiness.

As of Sept. 30, the credit default swaps portfolio of Primus Financial Products LLC had $68.2 million in exposure to Kaupthing.

Bermuda-based Primus said it expect to make cash settlement payments to its counterparties smaller recoveries, but the recoveries have not been determined.

Shares plunged 63 percent to 78 cents during trading and ended the regular session down $1.20, or 57 percent, to 90 cents. Volume of 1.2 million shares exceeded the daily average through more than fourfold.