07-06-2011: Deminor reacts to US settlement for Thema investors

 

Deminor takes notice of today's announcement made by HSBC on a settlement reached with investors in Thema International Fund PLC in the framework of a US class action pending before the courts of New-York. Please note that Deminor is not part of that settlement, nor represents investors in Thema International Fund PLC, being in the USA or elsewhere.

Deminor wishes to express its preliminary view on this settlement, as it represents 2.500 investors in Madoff feeder-funds, including 800 investors in funds for which HSBC acted as service provider.

Deminor believes that this settlement is a significant development in the recovery process for investors in feeder-funds, as an important service provider has for the first time shown its willingness to dialogue with investors. Deminor remains strongly convinced that settlements directly negotiated between service providers and representative groups of investors are the preferred solution to resolve the pending disputes.

At this stage, Deminor is not in a position to make any assessment of the settlement amount. However, based on publicly available information, we conclude that this settlement leaves a substantial part of the losses suffered by Thema investors unrecovered, despite the fact that HSBC bears an important share of the responsibility for the total losses.

 

 

Contact:

 

Erik Bomans, Charles Demoulin & Edouard Fremault