Annual report 2009 - Dexia.com

General informationAll the above-mentioned amounts are principal amounts towhich interest must be added. The amount of the interestand the date from which it should be calculated are stillunder discussion.In the worst case, the rate of interest to be applied is thestatutory rate of interest which between 2000 and 2009 hasvaried between 7% and 5.5%.With regard to the starting date from which the interest is to becalculated, the civil parties differ in their approach as to whetherit should be a particular date (e.g. 9 November 2000 – the dateon which the LHSP share was suspended –, the date on whichthe LHSP shares were bought, or the date on which LHSP wasdeclared bankrupt in October 2001) or a mean date.For the following reasons, among others, it remains very difficultto determine the real extent of the damages claimed:• a number of parties are claiming provisional amounts;• the rate of interest to be applied and the USD/EUR conversionrate are still under discussion;• the final number of civil parties is still unknown;• proving the link between the damage suffered by the investorsand the alleged wrong committed by ABC is a very complicatedmatter.Dexia Bank, in its turn, has made a claim as a civil partyagainst Messrs Lernout, Hauspie, Willaert and Bastiaens andagainst LHSP SA in October 2007, claiming damages for aprovisional amount of EUR 2. Dexia Bank’s claim is in relationto the losses suffered on its LHSP portfolio (Dexia Bankis still holding 437,000 LHSP shares) and to an amount ofEUR 27,926,275.50 owed to it by LHSP under a USD 430million syndicated credit facility dated 5 May 2000 (see paragraph4.2.1. above). The solvency of these parties howeveris uncertain.4.2.4. Civil proceedings against Dexia Bankin Belgium4.2.4.1. LHSP receivers’ claimIn July 2005, the Belgian receivers of LHSP filed an actionagainst twenty-one parties before the Commercial Courtof Ypres, including Dexia Bank. They claim compensationfor the net liabilities of LHSP in bankruptcy. According tothe receivers’ provisional assessment of the claim, the claimwould amount to approximately EUR 439 million. This claim,to a large extent duplicative of the claims introduced by thereceivers in the criminal proceedings, is not likely to have anydevelopment until after the end of the criminal proceedingsbecause of the principle le criminel tient le civil en état.4.2.4.2. Claims by individualsCertain civil claims have been filed before the CommercialCourt of Ypres by groups of investors in LHSP shares againstvarious parties, including Dexia Bank. The main claim wasfiled by Deminor on behalf of 4,941 investors. The claimantsseek damages for their losses, which have not yet beenassessed. Moreover, 151 investors affiliated to Spaarverliesalso commenced civil actions. These claims, to a large extentduplicative of the claims introduced in the criminal proceedings,are not likely to have any development until after theend of the criminal proceedings because of the principle lecriminel tient le civil en état.4.2.5. Civil proceedings against Dexia Bankin the United StatesAll the cases brought against Dexia Bank in the United Stateshave been finally terminated in full in 2008.4.2.6. L&H HoldingOn 27 April 2004, the bankruptcy receiver of L&H Holdingsummoned Messrs Lernout, Hauspie and Willaert, along withBanque Artesia Nederland (BAN) and Dexia Bank, to pay theprincipal amount of USD 25 million.This is connected with a USD 25 million loan granted to MrBastiaens by BAN in July 2000 for the purposes of the acquisitionby Mr Bastiaens of LHSP shares owned by L&H Holding.The selling price of USD 25 million was credited not tothe account of L&H Holding but to three separate accountsopened by Messrs Lernout, Hauspie and Willaert. Taking theview that this money was due to L&H Holding, the L&H Holdingbankruptcy receiver is claiming its repayment.This claim is not likely to have any development until afterthe end of the criminal proceedings because of the principlele criminel tient le civil en état.Dexia Bank vigorously contests the grounds for theseapplications.4.2.7. Banque Artesia Nederland (BAN)In October 2006, Dexia Bank sold its affiliated company BANto General Electric (GE). In the context of this operation, itwas agreed, in essence, that Dexia Bank would bear thefinancial consequences of the LHSP matter for BAN, cappedat an amount equal to the price paid by the purchaser.Most of the pending proceedings relate to the loan grantedby BAN to Mr Bastiaens. They include the claim introducedby the receiver of L&H Holding before the civil court (seeparagraph 4.2.6. above).They also include the actions which BAN, as creditor, enteredagainst Mr Bastiaens and against Messrs Lernout, Hauspieand Willaert, who had stood surety for Mr Bastiaens.The action against Mr Bastiaens is still outstanding. The solvencyof Mr Bastiaens is uncertain.Messrs Lernout, Hauspie and Willaert were ordered to repayBAN USD 24,999,999. That decision is now final. The solvencyof Messrs Lernout, Hauspie and Willaert is uncertain.The only genuine possibility of recovery is to be able to sellthe Parvest shares on behalf of BAN.Several parties have asserted rights over these Parvest shares,which were acquired by Messrs Lernout, Hauspie and Willaertwith the proceeds of the sale of LHSP shares to Mr Bastiaens(cf. paragraph 4.2.6. above): the investigating magistrate onbehalf of the Belgian State in the criminal case concerningLHSP with a view to confiscating them (on the grounds thatthose shares are the proceeds of a crime); the receiver inthe insolvency of L&H Holding (because those shares wereacquired by Messrs Lernout, Hauspie and Willaert throughthe sale of LHSP shares that belonged to L&H Holding) andKBC Bank (in its capacity as a creditor of L&H Holding).BAN has also taken possession of those shares and claims aright of distraint. Who finally ends up with these shares willManagement reportConsolidatedfinancial statementsAnnual financial statementsAdditional informationAnnual report 2009 Dexia 89