Perpetual Hybrid Securities/Subordinated Bonds


Perpetual Bonds / Hybrid perpetual subordinated bonds

During 2003-2013, many Greek banks issued hybrid perpetual bonds through their subsidiary companies with registered offices in the island of Jersey/States of Jersey, which they distributed horizontally through their branches  to the total of the consumers/prospective investors, regardless of whether the latter were aware of what they were buying or not.

Indeed, it would be quite difficult for the average investor, who is seeking to secure his money, to comprehend that the product the Bank itself was promoting as being issued by the same,  guaranteed by the same and which, moreover, was to be recalled after 5 years when the investor would redeem his money, was actually:

a)perpetual

b) perpetual as it has no maturity date

c) it had been issued by a shell-corporation with registered office in the Island of Jersey with no assets

d)the mentioned guarantee applies, provided that the issuer accepts to pay; in a different case  there is no guarantee

e) the interests may be discontinued if the Bank faces capital problems

f) the recall after 5 years lies in the discretion of the issuer (the shell-corporation with registered office in Jersey) and has no obligation to do so

g) such products holders in the event of liquidation are ranked at the bottom of the creditors list without any privilege

Subsequently, in 2012-2013, many Greek banks made through their subsidiaries buyback offers at 35-40% of their value,  The holders of said securities had no essential choice, as it made no sense keeping them until their maturity, since they did not have maturity.

On behalf of the the holders of said hybrid perpetual bonds, who were deceived concerning the real properties of said bonds, our firm shall institute class actions claiming the amount of the damages suffered (to wit, i) if they accepted the buyback offer we request for the difference between the buyback offer and the money they invested at the bond's purchase, ii) if they did not accept the offer, the entire amount they invested).