a.comment-link:before{content:"76";}

Saturday, November 5, 2016

BTG Pactual, Generali at Odds on Indemnity Linked to 1MDB Case

BTG Pactual, Generali at Odds on Indemnity Linked to 1MDB Case.


1MDB - The Continuing Saga of Washing Dirty Laundry of The World


Grupo BTG Pactual and Assicurazioni Generali SpA are in disagreement over which firm should bear potential losses tied to Swiss bank BSI AG’s dealings with a Malaysian fund.
BTG has “notified Generali by letter that it is entitled to indemnity to cover potential liability for BSI’s dealings with a state-run Malaysian fund,” the Sao Paulo-based company said in an e-mailed statement Tuesday. BTG, which bought BSI from the Italian insurer last year before reaching an agreement to sell it in February, said it hasn’t sought a specific amount because the potential costs are unknown.
BSI, whose Singapore unit handled accounts for the fund 1Malaysia Development Bhd., known as 1MDB, has said it’s cooperating with international regulators. Authorities from around the world -- including in the U.S., Luxembourg, Switzerland and Singapore -- are trying to determine if some of the billions of dollars that 1MDB raised since 2009 were siphoned into the personal accounts of politically connected individuals.
Generali hasn’t received any request from BTG that “qualifies as an indemnifiable claim pursuant to the transaction documents,” according to a spokesman for the Trieste, Italy-based insurer. The company is protected by “several contractual provisions including, a duty on BTG to mitigate and a sizeable deductible that may limit any ability of BTG to recover any damage,” the spokesman said by e-mail.

Asset Sales

BSI Chief Executive Officer Stefano Coduri told investors last week that in the context of issues surrounding 1MDB, the bank had exited its Malaysia business. He declined to comment further, saying “there are official investigations.”
Both 1MDB and the Malaysian government have denied any wrongdoing, and the fund has said it’s cooperating with probes.
BTG is selling assets in the wake of a corruption investigation that led to the arrest of founder and former chairman Andre Esteves on Nov. 25. The billionaire, who has denied wrongdoing, was released from prison in December and has since been under house arrest. He’s denied wrongdoing through his attorney.
BTG agreed in February to sell the Swiss private bank to Zurich-based EFG International AG.
EFG CEO Joachim Straehle said Feb. 22 that the bank’s protection on the deal was “sizable.” The firm’s chief financial officer, Giorgio Pradelli, said March 31 on a call with analysts that the bank had strong legal protections and a “material” amount in escrow..

No comments: