Settlement Agreements Declared Binding
News on oral hearing
A statement of Defence has been filed against the Joint Petition
Converium's common stock was listed on the SWX Swiss Exchange in Zürich, Switzerland, from 11 December 2002 to 30 May 2008. Before 11 December 2001, Zurich Financial Services Ltd (hereinafter: "ZFS") was the sole shareholder of Converium.
In the period from October 2002 through September 2004, the market price of Converium's common stock declined substantially after Converium made various public announcements that it needed to increase its financial reserves for reinsurance coverage it had issued.
In July 2010, the Stichting Converium Securities Compensation Foundation (hereinafter: the "Foundation") and Vereniging VEB NCVB (hereinafter: "VEB") entered into separate settlement agreements with Converium and ZFS, respectively (hereinafter referred to jointly as the "Agreements"), for the benefit of all Non-U.S. Exchange Purchasers.
On 9 July 2010, the Foundation, VEB, Converium, and ZFS jointly filed a petition with the Amsterdam Court of Appeal, in The Netherlands (hereinafter: the "Court"), and on 1 October 2010 an amended petition, to have the Agreements declared binding on the basis of the petition of 1 October 2010 (hereinafter: the "Petition") on all Non-U.S. Exchange Purchasers pursuant to Article 7:907 of the Dutch Civil Code (Burgerlijk Wetboek).
By Court Order of 12 November 2010, the Court pronounced in a provisional judgment that it is competent to take cognizance of the request in the joint Petition of 1 October 2010 and, furthermore, decided that interested parties may present their arguments in a statement of defense or at the oral hearing of the Petition if they so desire.
The Court has scheduled an oral hearing to determine whether to declare the Agreements binding on 3 October 2011, at 10:00 a.m., in the Court Building (Paleis van Justitie) at Prinsengracht 436 Amsterdam, The Netherlands, which hearing will be continued the following day, if necessary. Non-U.S. Exchange Purchasers and foundations and associations that have full legal competence and, under their articles of association, to represent the interests of the persons for whose benefit the Agreements have been concluded, will find important information about the Agreements, the consequences if the Petition to declare the Agreements binding is granted, the possibility of submitting a written statement to opt-out of the binding effect, information about inspection of the Petition and related documents, the possibility of filing statements of defense to the Petition to declare binding, and the procedure during the oral hearing on the page entitled "Frequently Asked Questions".