‘Duped’ BOCY share­hold­ers to sue

Financial Mirror (Cyprus) - - FRONT PAGE -

The old share­hold­ers of Bank of Cyprus, who saw their stakes di­luted to less than 0.5% last year and new shares is­sued to de­pos­i­tors in ex­change for eq­uity, known as the ‘bail in’, plan to sue the bank and the res­o­lu­tion au­thor­i­ties for their losses and to re­store their rights.

Head­ing the as­so­ci­a­tion of nearly 88,000 old BOCY share­hold­ers, Arch­bishop Chrysos­to­mos said Mon­day’s meet­ing drafted a pe­ti­tion that will be handed to Pres­i­dent Ni­cos Anas­tasi­ades.

The as­so­ci­a­tion had ear­lier an­nounced that it wanted the restora­tion of the value of their pre-bailin eq­uity stakes in the bank by recog­nis­ing a 1.9 bln euro profit aris­ing from BOCY’s re­luc­tant takeover of ex-Laiki bank’s op­er­a­tions, or the grant­ing of prop­erty owned by the bank in the oc­cu­pied ar­eas, held in the lender’s books at zero value.

The as­so­ci­a­tion’s le­gal ad­vi­sor Kypros Chrysos­to­mides said that “it is more than ob­vi­ous that the treat­ment the Bank of Cyprus’ old share­hold­ers were sub­jected to is il­le­gal, based on both the Cypriot con­sti­tu­tion and Euro­pean law, and now based on com­pany law be­cause the Bank of Cyprus is ar­bi­trar­ily go­ing ahead with a cap­i­tal in­crease at the ex­pense of ev­ery share­holder, old and new alike.”

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