Dow Jones received a payment from EQS/DGAP to publish this press release.
DGAP-Media / 2018-07-11 / 13:05
New York and Hamburg, 11 July 2018 - Holders of more than EUR 900 million of
HSH Nordbank AG ("HSH") tier 1 instruments have filed an application in the
United States for judicial assistance under 28 U.S.C. 1782. The holders
request the right to serve subpoenas on Cerberus Capital Management, L.P.,
J.C. Flowers & Co. LLC and GoldenTree Asset Management L.P. in support of
planned litigation in Germany solely against HSH.
The German litigation will focus on whether the tier 1 holders have been
subject to improper and unlawful treatment by HSH.
In February of this year HSH announced a concurrent sale of the majority of
its shares and a portfolio of its loans to essentially the same set of
buyers. HSH recognized a significant loss on the loan portfolio sale, which
in turn purportedly caused a write-down of the tier 1 instruments. The tier
1 holders allege that no effort was made to market the loans in a
competitive process and that the loan portfolio sale may have been
structured to impermissibly benefit the buyers at the expense of the tier 1
holders. The subpoenas seek documents relating to these transactions as the
German litigation will focus, among other things, on whether these related
sales improperly burdened the tier 1 holders.
The application details additional allegations, including the charge that
over many years HSH made repeated and, the holders allege, impermissible
contributions to a statutory reserve (§340g of the German Commercial Code)
which can only be properly used to protect against general banking risks.
These contributions have purportedly allowed HSH to write-down the tier 1
instruments. The subpoenas also seek documents related to these additional
allegations.
*Press contact:*
Charles Barker Corporate Communications GmbH
Thomas Katzensteiner / Tobias Eberle
+49 69 794 090 -25 / -24
Thomas.Katzensteiner@charlesbarker.de
Tobias.Eberle@charlesbarker.de
End of Media Release
Issuer: Charles Barker Corporate Communications GmbH
Key word(s): Finance
2018-07-11 Dissemination of a Press Release, transmitted by DGAP - a service
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703595 2018-07-11
(END) Dow Jones Newswires
July 11, 2018 07:05 ET (11:05 GMT)
