Preliminary insolvency proceedings were opened against Fidentum GmbH before the Amtsgericht Hamburg (Hamburg Local Court) on December 4 (Az. 67c IN 473/15). The issuing house offered its clients the LombardClassic 3 Fund.
GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London conclude: The issuing house Fidentum GmbH established the LombardClassic 3 Fund, thus allowing investors to indirectly invest in margin lending transactions. Their money was placed at the disposal of Lombardium Hamburg GmbH & Co. KG (a limited partnership with a GmbH as general partner) in the form of earmarked loans. The company predominantly invested in Pfandbriefe (covered bonds).
However, the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) [Federal Financial Supervisory Authority] instructed the company in its notification of December 4 to immediately cease its unauthorised lending activities and wind up the loan agreements. On the same day, the Amtsgericht Hamburg opened preliminary insolvency proceedings against Fidentum GmbH.
Investors were able to participate in the LombardClassic 3 Fund with a minimum investment of 5,000 euros. The objective was to achieve an issue volume of 30 million euros with the option to increase this. With a term of three years, the investors’ participation was expected to yield an annual return of up to 7 per cent. However, not only might the pay-outs now fail to materialise, the investors’ money may also be at stake. Investors may be concerned by this development and consider the money they invested to be at risk. In these circumstances, they can turn to lawyers who are versed in the fields of banking and capital markets law.
While the investment fund company is unlikely to be directly affected as an independent company by Fidentum GmbH’s insolvency, if Lombardium Hamburg GmbH & Co. KG is unable to repay the loans then the investors may nevertheless be faced with financial losses. In order to prevent this from happening, the investors’ legal options ought to be reviewed at an early stage. It might even be possible for them to assert damages claims, as these can arise e.g. as a result of erroneous investment advice. By purchasing the fund shares, the investors acquired equity investments and thereby assumed a risk that could result in the total loss of the money they invested. The investors should have been fully informed about this. Furthermore, it is also worth examining possible claims against those responsible for the prospectus and in charge of the company.
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