is right in the case of the former holders of Mandatory Convertible Securities. The MSC or subordinated debt that Fortis issued at the end of 2007 and which were converted into shares of the legal successor Ageas three years later. They accounted for 2 billion euros.
This means that the insurance group does not have to pay compensation to the MSC holders.
It is another positive step towards resolving past legal issues.
Ageas welcomes the ruling. “It is another positive step towards resolving past legal affairs, allowing the group to further focus on its insurance business,” said a press release.
The claimants requested the ratification of a decision taken by the MCS bondholders meeting to postpone the expiry date of the MCS to December 7, 2030. They therefore requested that the conversion of the MCS into Ageas shares be undone. Or alternatively, a provisional compensation and the appointment of an expert to determine their precise damage.
Those demands were dismissed last year by the Court of Appeal. Cassation now confirms that statement.
In the Netherlands, Ageas reached a settlement in the latest Fortis case in March. In our country there is still a case. Patrinvest, the company of AB InBev billionaire Alexandre Van Damme, appealed earlier defeats.
The largest settlement, for which Ageas set aside a pot of 1.3 billion euros, is currently being handled administratively. 725 million euros have already been paid to 216,000 victims. The rest of the amount will be distributed later this year.