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Therium will finance millionaire claims against banks that placed swaps to renewable energy companies

Therium will finance millionaire claims against banks that placed swaps to renewable energy companies

Supreme Court sentences confirm the lack of information in the swaps’ placement processes to companies of the renewable energy sector.

14 july 2016

Companies with liquidity problems have now a new a ally: Therium. The international company specialised in law suits arrives to Spain to finance claims of 100 million Euros against banks that placed swaps to renewable energy companies. In fact, this week they have already started to prepare their first law suits together with the Jausas specialised law firm.

Therium bears the legal costs of the claim in the cases where sentences were favourable to plaintiffs, obtaining a commission around the 30% of the amount. With unfavourable cases, the firm hiring this service will pay nothing to to Therium.

This type of service can be especially beneficial for those companies that can’t bear the cos of the law suits, situation of many organisations as a consequence of the low premiums.

In April 2015, the CNMC (National Committee of Markets and Competence) initiated proceedings against BBVA, Sabadell, Sandanter and CaixaBank for supposed anticompetitive agreements in the swaps’ price setting

Lack of information

Affected companies hired this type of swaps arrangements to protect themselves of price rises. With these agreements, bank entities covered themselves of possible non-payments, however, sentences of the Supreme Court confirm that banks did not explain to their clients that, if the Euribor dropped, they will have to pay to the entities.  This appears in at least 25 sentences, two of them are from renewable energy companies.

“The details of the derivatives were not explained to clients and they didn’t know them until at the notary”, says Jordi Ruiz de Villa, Jausas associate, who adds that “there were also distortions in the swaps’ prices”.

The National Committee of Markets and Competence (CNMC) is also investigating this kind of actions. In April of the last year, initiated proceedings against BBVA, Sabadell, Sandanter and CaixaBank for supposed anticompetitive agreements in the swaps’ price setting that banks sold to renewable energy companies. Entities said that it was syndicated financing, and they will have to fix a single price.

Therium was created in 2009 and has financed claims of 4.512 million euros until now, 300 of them in 2015. The litigations found is specialised in cases of companies related with banking and financial markets, international arbitration, intellectual property and insurances.

Tags swaps , claims , banking
Published by: Pablo Martí Prats
 
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