Bank of Valletta announced that it has made a large-scale settlement European363 million claims by bond holders of an abolished Italian shipping company European182.5 million without accepting any responsibility on that side.
The news sought the confiscation of € 363 million in preventive collateral when banks considered working with the Deiulemar Group’s bankruptcy curators to reach an out-of-court settlement of the dispute last December. It happened when.
“The World Bank can announce that it has reached an out-of-court settlement agreement without admitting negligence after a lengthy and detailed discussion with Deiulemar’s legal representative for bankruptcy, including approximately 13,000 bondholders. The bank said in a statement Wednesday.
Explaining the settlement, BOV stated that it had agreed to pay a total of € 182.5 million and a final settlement for the € 370 million decision issued by Torre Annunziata’s court of first instance.
“This will eliminate all claims from either side, and BOV will no longer be liable for any ongoing incidental or actual liability, and the previously deposited approximately 370 million euros of collateral will be pledged to BOV. It will be returned directly, “said the bank.
“Given the existing reserves held for this potential debt, the BOV will include an additional one-off fee of € 100 million in its profit and loss results this year,” the World Bank continued. I did.
The Bank stated that it has a very strong capital position and will continue to meet all regulatory requirements in absorbing the impact of this settlement agreement. Eliminating uncertainty further increases confidence in the World Bank’s long-term sustainability, BOV added.
“The legal agreement has been finalized and a settlement under this agreement will take place within a few days, closing this long unresolved position in proceedings since 2014,” BOV said. Said.
BOV Chairman Gordon Cordina commented: The Board had to make a very difficult decision to approve the settlement amount after it was decided that ending this issue would be in the Bank’s best interests. Going forward, the Bank will be in a safer capital position as a whole and will be in a better position to move forward with confidence and sustainability. Deiulemar Bankruptcy Legal Agents, including approximately 13,000 creditors as creditors, embraced our approach, Reconciliation despite a ruling in favor of twice that amount. “
The BOV said the decision was made collectively and unanimously by the Board of Directors after reviewing and reviewing legal opinions from several major authorities in both Italy and Malta. This was also supported by a detailed risk assessment of the various options available to the World Bank and the potential consequences of each scenario.
“Despite the consistently expressed legal and still predominant views that the case has no merit, Torre Annunziata’s court of first instance ruled that the case was the local environment of Deiulemar bondholders. Proved to be subject to different interpretations, and is completely hostile to banks. “
“The Board has considered the very real risk that, despite its purely legal position, such a ruling could be subsequently approved by the Naples-based Court of Appeals. When this happens, the options available to the World Bank are limited and may extend uncertainty by more than a decade. The settlement amount is the risk of these possible consequences from all sides. The Board of Directors evaluated this option as the best option, “he added.
The Bank said it has informed regulators who are reassured that the cause of this risk has been removed and that more certainty has been restored with respect to future capital levels.
Claim European363 million were created by approximately 13,000 bondholders of the Deiulemar Group. Offer to resolve EuropeanAt the end of last year, 50 million people were rejected.
The proceedings began after the Deiulemar Group liquidators, along with representatives of 13,000 Italian bondholders, filed in court against BOV after they lost their lifesaver.
In 2009 BOV allegedly hijacked a trust holding € 363 in the assets of a shipping company that went bankrupt in 2012. In 2014, many members of the founding family of a shipping company were imprisoned for illegal financial transactions. When the shipping company went bankrupt, bondholders who lost their lifesaver turned to Malta’s banks.
https://www.independent.com.mt/articles/2022-05-04/local-news/Bank-of-Valletta-settles-Deiulemar-case-for-182-5-million-6736242676 Bank of Valletta resolves Deiulemar proceedings for € 182.5 million