Friday, 29 May 2015
Last updated 15 hours ago
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."
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…