Tier 1 bondholders have begun a class action in the District Court of Kiel
While HSH Nordbank was finally sold for a nominal €1 last November, a group of 18 "Tier 1" creditors have deposited claims totaling €1.4B with the district court in Kiel. They accuse the bank management of irregular accounting practices aimed at reducing the value of the investments.
The creditors claim that their bonds taken out between 2002 and 2005 with a nominal value of €2B were improperly written down to €1B. Claims for a further €400M relate to activities at HSH Nordbank Luxembourg branch.
HSH Nordbank and its new owners declined to comment on the specifics of the claims.
The creditors stated that they are prepared to negotiate a mutual agreement to settle this "unpleasant matter."