DAF bondholders begin court action

Bondholders in the failed truckmaker DAF NV have begun a multi-million-pound court action against the company's 10-strong bank syndicate, which includes Barclays, Lloyds and National Westminster.

Thousands of investors, among them a group of Dutch nuns, the Sisters of Saint Francis, claim that they were misled by the banks, led by the Netherlands-based ABN Amro.

The dispute involves a 150 million guilder (£57m) bond issue by DAF in 1988. The company went bankrupt in 1993, but the bondholders claim that while senior creditors were reimbursed they received nothing.

The writ has been issued on behalf of bondholders by the trustee to the bond issue, Nederlandsche Trust-Maatschappij (NTM). The writ alleges that ABN Amro published misleading information in a 1988 prospectus to the issue.

NTM's Otto Linker said yesterday that the writ had been served on 23 December. NTM argues that bondholders were promised equal treatment with other creditors and say they are owed about 150m guilders raised from asset sales after DAF's collapse.

A new company, DAF Trucks BV, was resurrected from the collapse and bank creditors got more than 800m guilders.

One of the bondholders, Gary Klesch, whose London firm Klesch & Co specialises in bond bankruptcy situations, said DAF executives had told them the bond investors ranked equally as creditors with the banks.

Mr Klesch said that the former DAF chairman, Aart van der Padt, had confirmed in public hearings in 1993 that it was "his understanding that the bondholders would be entitled to the same security as the banks". Klesch & Co is thought to own bonds worth £10m.

Mr Linker said the group bank creditors were the first target of the action, but if the court failed to grant bondholders equal treatment, NTM would begin action against ABN.

ABM declined to comment on the action. The banks have three months to respond to the writ.

DAF bonds have a nominal value of 100 guilders but have been trading at 7 guilders.

News
More than 90 years of car history are coming to an end with the abolition of the paper car-tax disc
newsThis and other facts you never knew about the paper circle - completely obsolete tomorrow
Arts and Entertainment
Gay and OK: a scene from 'Pride'
filmsUS film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
News
people'I’d rather have Fred and Rose West quote my characters on childcare'
Arts and Entertainment
Hilary North's 'How My Life Has Changed', 2001
booksWell it was good enough for Ancient Egyptians and Picasso...
PROMOTED VIDEO
Life and Style
Magic roundabouts: the gyratory system that has excited enthusiasts in Swindon
motoringJust who are the Roundabout Appreciation Society?
Sport
footballManchester City 1 Roma 1: Result leaves Premier League champions in danger of not progressing
Life and Style
The new Windows 10 Start Menu
tech
Travel
Bruce Chatwin's novel 'On the Black Hill' was set at The Vision Farm
travelOne of the finest one-day walks you could hope for - in Britain
News
Kim Jong Un gives field guidance during his inspection of the Korean People's Army (KPA) Naval Unit 167
newsSouth Korean reports suggest rumours of a coup were unfounded
News
i100
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?
Why do we like making lists?

Notes to self: Why do we like making lists?

Well it was good enough for Ancient Egyptians and Picasso...
Hong Kong protests: A good time to open a new restaurant?

A good time to open a new restaurant in Hong Kong?

As pro-democracy demonstrators hold firm, chef Rowley Leigh, who's in the city to open a new restaurant, says you couldn't hope to meet a nicer bunch
10 best children's nightwear

10 best children's nightwear

Make sure the kids stay cosy on cooler autumn nights in this selection of pjs, onesies and nighties
Manchester City vs Roma: Five things we learnt from City’s draw at the Etihad

Manchester City vs Roma

Five things we learnt from City’s Champions League draw at the Etihad
Martin Hardy: Mike Ashley must act now and end the Alan Pardew reign

Trouble on the Tyne

Ashley must act now and end Pardew's reign at Newcastle, says Martin Hardy
Isis is an hour from Baghdad, the Iraq army has little chance against it, and air strikes won't help

Isis an hour away from Baghdad -

and with no sign of Iraq army being able to make a successful counter-attack
Turner Prize 2014 is frustratingly timid

Turner Prize 2014 is frustratingly timid

The exhibition nods to rich and potentially brilliant ideas, but steps back
Last chance to see: Half the world’s animals have disappeared over the last 40 years

Last chance to see...

The Earth’s animal wildlife population has halved in 40 years
So here's why teenagers are always grumpy - and it's not what you think

Truth behind teens' grumpiness

Early school hours mess with their biological clocks
Why can no one stop hackers putting celebrities' private photos online?

Hacked photos: the third wave

Why can no one stop hackers putting celebrities' private photos online?
Royal Ballet star dubbed 'Charlize Theron in pointe shoes' takes on Manon

Homegrown ballerina is on the rise

Royal Ballet star Melissa Hamilton is about to tackle the role of Manon
Education, eduction, education? Our growing fascination with what really goes on in school

Education, education, education

TV documentaries filmed in classrooms are now a genre in their own right
It’s reasonable to negotiate with the likes of Isis, so why don’t we do it and save lives?

It’s perfectly reasonable to negotiate with villains like Isis

So why don’t we do it and save some lives?