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| Philipp Simon |
At the time of its administration (Nov. 2009), the unsecured subordinated note holders were owed EUR1.24 billion by the Luxco.
The Administrators were of the view that the purpose of administration had been achieved and accordingly the Luxco should be dissolved. This approach was opposed by the committee of note holders. The basic argument being that were no exceptional circumstances sufficient to displace the basic and accepted rule that in the circumstances the circumstances did not allow a deviation from the principle that a winding-up order should be made where a creditor's debt is undisputed and dissatisfied. This view was upheld by The High Court.
Based on this decision in the first week of December 2011, the Liquidators were forced to urgently decide what, if any, action to bring against the Luxco’s limited partner, general partner or its management, for that any such claims were threatened by limitation by mid December 2011.
Under the procedural rules of the Grand Duchy of Luxembourg, limitation is stopped where particulars of claims are served on the defendant’s by a bailiff on instructions from a claimant. Thereafter, the parties have three years to issue the claim in court.
Meanwhile, action has been taken to safeguard the interests of the creditors and Philipp Simon continues to oversee proceedings in Luxembourg and to advise on the case.
1. Nothing in this release is to be considered as formal legal advice and it is thus recommended not to rely on any of the information contained therein