Private Equity Firm Crown Ocean Beats Commerzbank In Court

Dec 19 2011 | 2:24pm ET

A private equity firm has won a ruling that would force a Commerzbank unit to pony up payments it had stopped on profit certificates.

The victory, on appeal, by Crown Ocean Capital, is the second time Commerz-owned Eurohypo has been defeated on the issue in the German courts. Earlier this year, hedge fund QVT Financial also won a ruling on the matter.

A lower court had ruled that Eurohypo, which Commerz acquired in 2005, could stop payments on profit certificates—issued by Rheinhyp AG, latter bought by Eurohypo—in 2009 after recording a loss. Commerz is considering an appeal.

"The ruling for the first time clarifies an important legal issue: How do you indemnify profit certificate investors in a takeover?" Crown Ocean lawyer Klaus Steiner told Bloomberg News. "The court reasoned that you have to grant them protection similar to shareholders in that situation under German law."


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR