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Capinordic Facing DKK 123m Claim
10-08-2010
09:05
After an investigation into a series of transactions between Capinordic Bank and parent company Capinordic, state-owned bank rescue company Financial Stability has issued claims against the now defunct bank totaling DKK 123 million. The bank’s former directors could be personally liable for the claim.
According to an announcement Monday evening, a number of Capinordic’s transactions breached Denmark’s Financial Services Act in the months leading up to its collapse. As a result, Financial Stability said, it is entitled to compensation stemming from its takeover of the ailing investment bank in February 2010.
The transactions in question include Capinordic’s acquisition of a number of other financial concerns, including Fondsmæglerselskab A / S and Mercon A / S in 2009 and the acquisition and subsequent sale of Equity & Currency Invest Nordic ApS in 2008-2009, as well as the acquisition of shares and intra-group transactions in shares in that company. In all, Capinordic must repay DKK 123 million.
Six months ago the Copenhagen-based bank announced that it was suspending all payments in the face of unsustainable losses. The bank was subsequently taken over by Financial Stability, meaning Danish depositors were covered by the state’s guarantee scheme. Last week a legal review commissioned by Financial Stability raised strong criticism of the bank’s management and its lending policy.
Capinordic is now known as NewCap Holding A / S,
According to an announcement Monday evening, a number of Capinordic’s transactions breached Denmark’s Financial Services Act in the months leading up to its collapse. As a result, Financial Stability said, it is entitled to compensation stemming from its takeover of the ailing investment bank in February 2010.
The transactions in question include Capinordic’s acquisition of a number of other financial concerns, including Fondsmæglerselskab A / S and Mercon A / S in 2009 and the acquisition and subsequent sale of Equity & Currency Invest Nordic ApS in 2008-2009, as well as the acquisition of shares and intra-group transactions in shares in that company. In all, Capinordic must repay DKK 123 million.
Six months ago the Copenhagen-based bank announced that it was suspending all payments in the face of unsustainable losses. The bank was subsequently taken over by Financial Stability, meaning Danish depositors were covered by the state’s guarantee scheme. Last week a legal review commissioned by Financial Stability raised strong criticism of the bank’s management and its lending policy.
Capinordic is now known as NewCap Holding A / S,
*****||*****Capinordic Facing DKK 123m Claim*****||*****After an investigation into a series of transactions between Capinordic Bank and parent company Capinordic, state-owned bank rescue company Financial Stability has issued claims against the now defunct bank totaling DKK 123 million. The bank’s former directors could be personally liable for the claim.*****||*****
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