Mensajepor MAGICBOX » Vie Abr 13, 2018 10:58 am
Argentina’s VALO Falls After Unfavorable Court Ruling
2018-04-12 23:38:53.261 GMT
By Carolina Millan
(Bloomberg) -- Shares of Grupo Financiero Valores fell 4.3%
to 8.3 pesos per share, the most since Feb. 23, after a ruling
by a commercial appeals court determined the group must make
rectifying payments related to activities by predecessor company
Merval.
* Court ruling dated April 10 and published April 11 says Merval
must compensate for shares held as guarantee from a local short-
term placement with broker Gysin y Cia, which Merval later sold
* Gysin y Cia sought asset protection from creditors in 2008 and
the April 10 ruling said Merval must repay the guarantee as the
sale didn’t allow for equal treatment of creditors
* “Grupo Financiero Valores should absorb the impact of the
ruling, which is not provisioned for in its balance sheet," said
Pablo Waldman, head of research at INTL FCStone Argentina,
citing the ruling as the reason for the stock’s decline
** "The ruling creates serious doubts going forward on the
system of market-guaranteed short-term placements, as it
seriously affects the market’s ability to execute its
guarantees"
* VALO plans to appeal the ruling as it "creates a systemic risk
for the entire system of market guarantees,” Chief Executive
Officer Santiago Urdapilleta said in an interview
** VALO has 10 days to appeal the ruling
* Shares of stock operator BYMA fell 1.8% on Thursday
* NOTE: Merval split last year into two groups, stock operator
BYMA and bank holding company VALO, as part of the
demutualization of Argentina’s Mercado de Valores; as a result,
Grupo de Valores took over Merval’s legal liabilities