Obbligazioni bancarie Risoluzione Banco Popular DE0009190702 (1 Viewer)
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Banco Popular bondholders take legal fight to US
Bondholders who had their investments in Banco Popular wiped out last year have launched fresh proceedings in a New York court, in a bid to bring the powers of the US legal system to bear on their existing action against European authorities.
FT (solo titolo)
Bondholders who had their investments in Banco Popular wiped out last year have launched fresh proceedings in a New York court, in a bid to bring the powers of the US legal system to bear on their existing action against European authorities.
FT (solo titolo)
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The Single Resolution Board’s appeal panel has upheld its stance regarding the disclosure of redacted documents in the decision to sell Banco Popular in June 2017, according to a release. The EU’s resolution authority will not release an unredacted version of most documents but has said that it has remitted the decision to publish the original copy of some of the reports to the SRB’s board. The decision to send the final resolution to the board was made “to ensure compliance with the findings provided in its decisions regarding the respective documents.”
As part of the sale of Popular, its AT1 notes were canceled, and T2 notes were converted into equity. This inflicted a €850 million hit on bondholders. The documents provide some context to the claims from a group of Banco Popular’s bondholders, which appealedagainst Spain's banking bailout fund in September 2017.
The SRB believes its decision to release heavily redacted versions of the documents in February, was “in compliance with the applicable procedural rules, that the duty to state reasons has been complied with and there has not been a manifest error of assessment or misuse of power.”
In parallel, the SRB released its decision on an appeal filed by investors requesting the release of the documents in question in March, after the release of the redacted version of the papers. Investors holding the bank’s Tier 1 and 2 bonds party to the appeal comprise Pimco, Anchorage Capital, Algebris, Ronit Capital and Cairn Capital. They are advised by Quinn Emanuel Urquhart & Sullivan. Andersen Tax & Legal is acting as Spanish legal counsel for the bondholders, who filed the appeal against the FROB bailout fund with Spain's High Court on Sept. 6.
The SRB denied the investors’ appeal, as it considers these documents “should be regarded as being covered by a general presumption of non-accessibility based on the exceptions laid down in Article 4(1)(a) first indent of Regulation 1049/2001 and Article 4(2), third indent. 73.” The institution further adds that the refusal was “done in compliance with the applicable procedural rules,” and “within the limits of the exercise by the Board of the margin of discretion which must be recognized to it according to settled case law.”
Claimants are looking to have the unredacted version of SRB's documents on Popular released since last year, even after the entitypublished heavily redacted versions of the reports in February.
In February, Judge Fernando Andreu of the Juzgado Central de Instrucción nº 4, or Fourth Central Magistrates’ Court, orderedparties in the resolution of Banco Popular to release uncensored documents about the lender’s sale to Santander. The judge, who is presiding over a High Court case on possible wrongdoing in Popular’s 2016 capital increase, asked entities that recently disclosed censored records to release the full version of the documents.
Last week, the SRB said Deloitte prepared an additional report - Valuation 3 - regarding the resolution of Banco Popular. The report was drafted to ensure the SRB decision to sell Banco Popular to Santander last year was “in compliance with the ‘no creditor worse off principle’.”
The new valuation drafted by Deloitte is meant to determine whether shareholders and creditors would have received a better treatment if the institution had been wound up under insolvency proceedings, according to today’s announcement. The SRB has said that it is “prepared to make a decision on the matter based on the report.”
As part of the sale of Popular, its AT1 notes were canceled, and T2 notes were converted into equity. This inflicted a €850 million hit on bondholders. The documents provide some context to the claims from a group of Banco Popular’s bondholders, which appealedagainst Spain's banking bailout fund in September 2017.
The SRB believes its decision to release heavily redacted versions of the documents in February, was “in compliance with the applicable procedural rules, that the duty to state reasons has been complied with and there has not been a manifest error of assessment or misuse of power.”
In parallel, the SRB released its decision on an appeal filed by investors requesting the release of the documents in question in March, after the release of the redacted version of the papers. Investors holding the bank’s Tier 1 and 2 bonds party to the appeal comprise Pimco, Anchorage Capital, Algebris, Ronit Capital and Cairn Capital. They are advised by Quinn Emanuel Urquhart & Sullivan. Andersen Tax & Legal is acting as Spanish legal counsel for the bondholders, who filed the appeal against the FROB bailout fund with Spain's High Court on Sept. 6.
The SRB denied the investors’ appeal, as it considers these documents “should be regarded as being covered by a general presumption of non-accessibility based on the exceptions laid down in Article 4(1)(a) first indent of Regulation 1049/2001 and Article 4(2), third indent. 73.” The institution further adds that the refusal was “done in compliance with the applicable procedural rules,” and “within the limits of the exercise by the Board of the margin of discretion which must be recognized to it according to settled case law.”
Claimants are looking to have the unredacted version of SRB's documents on Popular released since last year, even after the entitypublished heavily redacted versions of the reports in February.
In February, Judge Fernando Andreu of the Juzgado Central de Instrucción nº 4, or Fourth Central Magistrates’ Court, orderedparties in the resolution of Banco Popular to release uncensored documents about the lender’s sale to Santander. The judge, who is presiding over a High Court case on possible wrongdoing in Popular’s 2016 capital increase, asked entities that recently disclosed censored records to release the full version of the documents.
Last week, the SRB said Deloitte prepared an additional report - Valuation 3 - regarding the resolution of Banco Popular. The report was drafted to ensure the SRB decision to sell Banco Popular to Santander last year was “in compliance with the ‘no creditor worse off principle’.”
The new valuation drafted by Deloitte is meant to determine whether shareholders and creditors would have received a better treatment if the institution had been wound up under insolvency proceedings, according to today’s announcement. The SRB has said that it is “prepared to make a decision on the matter based on the report.”