Aggrieved Banco Popular bondholders train their sights on Banco Santander
Pimco and Anchorage subpoena the Spanish bank for information to support their case in the EU General Court and criminal proceedings in Madrid.
Subordinated bondholders that were bailed-in as part of the ‘textbook’ resolution of Banco Popular last summer have opened up a new front in their legal efforts to either get the decision annulled or, failing that, get compensation for their losses.
Two groups of investors have now made court filings in New York seeking information from the purchaser of the stricken bank – Banco Santander.
It was perhaps only a matter of time before the bailed-in investors decided to go down this route. As the sole owner of Banco Popular, Santander was an active and central participant in the resolution process and, in their view, must be in possession of documents and information that are very pertinent to understanding the basis on which the resolution was ordered by the Single Resolution Board (SRB).
Bondholders Pimco and Anchorage Capital have, therefore, made a court filing in New York seeking to obtain documents and information from Banco Santander pertaining to the purchase of Banco Popular for €1 in June 2017.
The filing was made on April 3, as a Section 1782 discovery application. This allows claimants in proceedings outside the US to seek evidence in aid of foreign proceedings, so long as the respondent has a presence in the US and is likely to have relevant documents – which Santander does.