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

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Ex-Hedge Fund Billionaire Won’t Run For Senate

Jan 23 2015 | 5:48am ET

Ex-hedge fund manager Tom Steyer will not run for Senate after Sen. Barbara Boxer...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note