Issue link: https://maltatoday.uberflip.com/i/1449240
3 maltatoday | WEDNESDAY • 9 FEBRUARY 2022 NEWS CONTINUED FROM PAGE 1 In a company statement, Bank of Valletta said it will be immedi- ately appealing the decision. Under the Torre Annunzia- ta proceedings, BOV was being requested to pay an amount equivalent to the value of the Deiulemar shares which had been settled on trust, with the bank as trustee. Bank of Valletta disputes the valuation of these shares, saying these were worth- less following the bankruptcy of Deiulemar Group. "Pending such appeal, the Bank would like to assure the market that it is well capitalized and its operations will not be adversely impacted by this decision," BOV said in a statement. In 2018, the bank placed in ex- cess of €363 million in the hands of an independent entity, follow- ing an order from the Tribunal of Torre Annunziata as precau- tionary security. No new pay- ment will be made as result of today's decision. Bank of Valletta is facing such a lofty claim for damages be- cause, in 2009, it had taken over a trust that held €363 million in assets of the Deiulemar compa- ny, which filed for bankruptcy in 2012. A Rome criminal court in 2004 had already determined that the Deiulemar company had un- der-declared liabilities of €700 million. In 2014, seven members of the three founding families of the Deiulemar company were jailed for up to 17 years for ille- gal financial transactions, owing €800 million to creditors. The bank had conducted an in- vestigation into the kind of due diligence carried out when it be- came a trustee for Trust Capital Trust, Trust Gaino, and Trust Gilda – which are being called on to answer for the €363 mil- lion claim. The €363 million claim is the tip of the iceberg of a story of massive fraud that took place in southern Italy, where over 13,000 bondholders had their savings wiped out. Investors in the Neapolitan province of Torre del Greco have protested the loss of their investments following the €800 million fraudulent bankruptcy of shipping giant Deiulemar. In July 2014, seven members of the three founding families of ship-owner Deiulemar were jailed for up to 17 years for ille- gal financial transactions as the company collapsed. It was de- clared bankrupt in 2012 owing more than €800 million. They were found guilty of fraudulent bankruptcy, having transferred their assets to Mal- tese, Swiss, and British Virgin Is- lands trusts to avoid their expo- sure to creditors and the 13,000 retail investors from Torre del Greco who subscribed to their bonds. The European Court of Human Rights had turned down BOV's claims of unfair treatment in Ita- ly, because the bank had not ex- hausted all its remedies in Italy. The bank had complained it was being denied a fair hearing in the courts of Torre Annunzia- ta, a small provincial town where the majority of creditors seeking compensation from BOV origi- nate. BOV CEO Rick Hunkin had told MaltaToday that the bank did not want to drag the case through the various levels of court litigation, as it wanted to be clear of this "shadow that has been hanging over the bank for a number of years". He said the bank was intent on settling the case out of court, de- spite sticking to its stand that it had no blame and played no part in the decision-making that led the investors to lose their mon- ey. BOV to appeal Italian court decision Bondholders and investors demand restition following the Deiulemar collapse