NEW YORK– LAWFUEL – The Law News Wire–Statement by Alexander Angueira, Attorney for Vivendi Holdings 1 Corp., Assignee of Claims Held by Elektrim Bondholders, Regarding Lawsuit Filed on June 1, 2007, for Breach of Fiduciary Duty and Breach of Contract against Law Debenture Trust Corporation, Plc (U.K.)and for Fraud and Breach of Contract against Elektrim S.A.:
(SEE TEXT OF LETTER BELOW)
Alexander Angueira, of the firm of Stearns Weaver Miller Wiessler Alhadeff & Sitterson, P.A., Miami Florida (305-789-3240), attorney for Vivendi Holdings 1 Corp, issued the following statement:
On Friday, June 1, 2007, on behalf of my client, Vivendi Holdings 1 Corp., as the assignee of claims held by Elektrim Bondholders, including General Motors Corp., I filed a lawsuit against Law Debenture Trust Corporation (LDTC) and Elektrim S.A., Defendants in United States District Court for the Southern District of Florida. (Case No. 07-21431, CIV-KING).
Attached is a letter I sent on Sunday, June 3, to representatives of Law Debenture Trust Corp., notifying it of the lawsuit and demanding that it maintain the status quo and not release any funds that it received from either Elektrim or Deutsche Telekom that relate to the unlawful transfer from Elektrim to Deutsche Telekom of shares of Polska Telfonia Cyfrowa Sp. z o.o. (“PTC”). Any release could further prejudice to the Bondholders’ rights to recover the value of an equity kicker that was added to the bond instruments by a Restructuring Agreement.
As set forth in the Complaint, the Law Debenture Trust Corporation breached both its fiduciary duty and its contractual obligations when it withdrew its bankruptcy petition against Elektrim SA while in the possession of material information that it did not disclose to General Motors or its financial advisor, Everest Capital Ltd. If that information had been disclosed, both General Motors and Everest Capital would not have supported withdrawal of the bankruptcy petition, and General Motors and Everest Capital would have retained the right to recapture assets that Elektrim had fraudulently transferred, including shares of Polska Telfonia Cyfrowa Sp. z o.o. (“PTC”) that were illegally transferred to Deutsche Telekom.
June 3, 2007
Via Facsimile and Electronic Mail
The Manager, Trust Administration
The Law Debenture Trust Corporation p.l.c
The Law Debenture Trust Corporation p.l.c
Re: EUR 510,000,000 Bonds due 2005 issued by Elektrim Finance B.V. and Guaranteed by Elektrim S.A. (“the Bonds”)
I represent Vivendi Holdings 1 Corp., the assignee of all claims held by, among others, General Motors Corp. (“General Motors”) with respect of its holding, through Everest Capital Ltd. (“Everest”), of Elektrim Finance BV 2% bonds due 12/18/2005.
On June 1, 2007, Vivendi Holdings 1 Corp. filed suit against Law Debenture Trust Corporation p.l.c. (“LDTC”) and Elektrim S.A. in the United States District Court for the Southern District of Florida. Among other things, the Complaint alleges that LDTC (i) breached its fiduciary duty to General Motors and other Elektrim bondholders and (ii) breached the Second Supplemental Trust Deed, when it failed to disclose material information to the bondholders prior to the bondholders’ decision to withdraw their bankruptcy petition against Elektrim and when it knowingly accepted proceeds of an illegal transaction. The Complaint seeks damages and an injunction requiring LDTC to hold in escrow the proceeds relating to the illegal transfer to Deutsche Telekom AG (“DT”) of shares of Polska Telfonia Cyfrowa Sp. z o.o. (“PTC”).
By this letter, I demand that LDTC maintain the status quo and not disburse or transfer any funds relating to the illegal transfer of PTC shares until the District Court has resolved the issues raised by the Complaint. Any disbursement of the funds could prejudice General Motor’s rights and those of Vivendi as assignee to additional funds from Elektrim under the Debt Restructuring Agreement as set forth in the Complaint.
Further, as the attorney for these Elektrim bondholders, I demand that you immediately send me all documents in LDTC’s possession, custody, or control relating to the Elektrim bonds.
This letter is sent without prejudice to the legal position and any rights and claims that Vivendi Holdings I Corp. might have in any existing or future court or arbitration proceedings.
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