A group of creditors demands in the dispute over the rating of bonds of HSH Nordbank to a billion euros. A claim of 18 investors from the USA, Germany and other European countries on 28. December has been submitted to the regional court of Kiel, told the group of investors. To add, indirectly, bonds issued, increase the total claim to EUR 1.4 billion.

The holders of hybrid instruments prior to throw the new HSH-owners to the financial investor Cerberus and J. C. Flowers, to enrich themselves at your expense. The former Landesbank have written the value of the papers is inadmissible. HSH declined to comment.

In the case of hybrid capital is a mixture of Equity and debt capital. Therefore, creditors of such bonds, often for losses. HSH has spent a total of more than two billion euros of hybrid instruments. Hamburg and Schleswig-Holstein had sold their Landesbank, under pressure from the EU Commission at the end of February 2018 for around a billion Euro to the consortium by Cerberus and J. C. Flowers, to be effective, the Takeover by the end of November.

Practically free

purchased a Few days after the Takeover, the HSH had at 30. November notified to terminate the hybrid instruments. The relevant book values of the securities are likely to amount to the end of 2020, only about 15 per cent of the nominal value declared by the Institute at the time.

creditors will now have to argue against it: If the HSH, the so-called Tier-1-to buy back bonds in fact, 15 per cent of their par value, this meant a Profit in the amount of 1.6 billion Euro at the expense of the bondholders who would only come for the new owners benefit. They had acquired the Bank, then, in fact, in vain, the point of view of the plaintiff.

The plaintiffs are asking for a write up of the papers on their face value, as well as damages “for wrongful loss of interest payments”. Despite the lawsuit, they were still willing to find with the HSH a friendly solution, shared with the creditors.


Sam Yoon has many years of experiences in journalism. He has covered such areas as information technology, science, sports and politics. Yoon can be reached at 82-2-6956-6698.