NEW YORK, June 3 /CNW/ - Statement by Alexander Angueira, Attorney for
Vivendi Holdings 1 Corp., Assignee of Claims Held by Elektrim Bondholders,
Regarding Lawsuit Filed on June 1, 2007, for Breach of Fiduciary Duty and
Breach of Contract against Law Debenture Trust Corporation, Plc (U.K.)and for
Fraud and Breach of Contract against Elektrim S.A.:
(SEE TEXT OF LETTER BELOW)
Alexander Angueira, of the firm of Stearns Weaver Miller Wiessler
Alhadeff & Sitterson, P.A., Miami Florida (305-789-3240), attorney for Vivendi
Holdings 1 Corp, issued the following statement:
On Friday, June 1, 2007, on behalf of my client, Vivendi Holdings 1
Corp., as the assignee of claims held by Elektrim Bondholders, including
General Motors Corp., I filed a lawsuit against Law Debenture Trust
Corporation (LDTC) and Elektrim S.A., Defendants in United States District
Court for the Southern District of Florida. (Case No. 07-21431, CIV-KING).
Attached is a letter I sent on Sunday, June 3, to representatives of Law
Debenture Trust Corp., notifying it of the lawsuit and demanding that it
maintain the status quo and not release any funds that it received from either
Elektrim or Deutsche Telekom that relate to the unlawful transfer from
Elektrim to Deutsche Telekom of shares of Polska Telfonia Cyfrowa Sp. z o.o.
("PTC"). Any release could further prejudice to the Bondholders' rights to
recover the value of an equity kicker that was added to the bond instruments
by a Restructuring Agreement.
As set forth in the Complaint, the Law Debenture Trust Corporation
breached both its fiduciary duty and its contractual obligations when it
withdrew its bankruptcy petition against Elektrim SA while in the possession
of material information that it did not disclose to General Motors or its
financial advisor, Everest Capital Ltd. If that information had been
disclosed, both General Motors and Everest Capital would not have supported
withdrawal of the bankruptcy petition, and General Motors and Everest Capital
would have retained the right to recapture assets that Elektrim had
fraudulently transferred, including shares of Polska Telfonia Cyfrowa Sp. z
o.o. ("PTC") that were illegally transferred to Deutsche Telekom.
June 3, 2007
Via Facsimile and Electronic Mail
The Manager, Trust Administration
The Law Debenture Trust Corporation p.l.c
The Law Debenture Trust Corporation p.l.c
Re: EUR 510,000,000 Bonds due 2005 issued by Elektrim Finance B.V. and
Guaranteed by Elektrim S.A. ("the Bonds")
I represent Vivendi Holdings 1 Corp., the assignee of all claims held
by, among others, General Motors Corp. ("General Motors") with
respect of its holding, through Everest Capital Ltd. ("Everest"), of
Elektrim Finance BV 2% bonds due 12/18/2005.
On June 1, 2007, Vivendi Holdings 1 Corp. filed suit against Law
Debenture Trust Corporation p.l.c. ("LDTC") and Elektrim S.A. in the
United States District Court for the Southern District of Florida.
Among other things, the Complaint alleges that LDTC (i) breached its
fiduciary duty to General Motors and other Elektrim bondholders and
(ii) breached the Second Supplemental Trust Deed, when it failed to
disclose material information to the bondholders prior to the
bondholders' decision to withdraw their bankruptcy petition against
Elektrim and when it knowingly accepted proceeds of an illegal
transaction. The Complaint seeks damages and an injunction requiring
LDTC to hold in escrow the proceeds relating to the illegal transfer
to Deutsche Telekom AG ("DT") of shares of Polska Telfonia Cyfrowa
Sp. z o.o. ("PTC").
By this letter, I demand that LDTC maintain the status quo and not
disburse or transfer any funds relating to the illegal transfer of
PTC shares until the District Court has resolved the issues raised by
the Complaint. Any disbursement of the funds could prejudice General
Motor's rights and those of Vivendi as assignee to additional funds
from Elektrim under the Debt Restructuring Agreement as set forth in
Further, as the attorney for these Elektrim bondholders, I demand that
you immediately send me all documents in LDTC's possession, custody,
or control relating to the Elektrim bonds.
This letter is sent without prejudice to the legal position and any
rights and claims that Vivendi Holdings I Corp. might have in any
existing or future court or arbitration proceedings.
For further information:
For further information: Orrick, Herrington & Sutcliffe Lanny Davis,
301-928-7532 Pager 1-888-997-3706