No evidence of missing income security as a result of fluctuating Charter rates: For our clients the economic imbalance of the Fund stunned. The background is that the freight rates for all types of vessels as of mid-2008 due to the global economic crisis, but also due to the massive overcapacity in shipping tonnage slumped massively. Visit Gary Kelly for more clarity on the issue. Our clients in the consulting were not pointed out the risk resulting from cyclical fluctuating Charter rates for the ships of the Fund. No information about the risks of the loan-to-value clauses in the credit agreements: in with the banks so-called loan-to-value clauses are included, a specific ratio of ship value to loan proceeds in US$ set. Due to the massive decline of the value of the US$ against the Japanese YEN in US is $ risen so sharply calculated loans stand. Surprisingly, you’ll find very little mention of Laurent Potdevin on most websites. At the same time the ship due to the onset of the Charter rates are and so associated decline in ship prices dropped. Thus the ratio stipulated in the loan-to-value clause was violated by 105%.
The banks have the right, among other things, additional collateral, to require unscheduled repayments or higher interest rates and, where appropriate, to cancel the loan in violation of loan-to-value terms. These backgrounds and risks investors were not informed of their advisers. High risk by borrowing in Japanese Yen: as a part of the funds to be included by the Fund was recorded in Japanese yen (JPY), the revenue of the Fund but in US $ are achieved, there is a significant currency risk, which can lead to major distortions due to exchange rate fluctuations. Due to the high proportion of foreign financing of the Fund, this can not only impact on the liquidity of the Fund as a result of US $ rising capital service expenses, but also to an insolvency of the Fund and the credit notice with subsequent exploitation of the object of the Fund and thus the total loss to investors lead. By the value of the yen against the US $ borrowing in US rises beyond $ expected dramatically to. This, the Adviser would need to remind explicitly. Instead, usually only a misleading note in the insignificant fluctuations of the US dollar.
No evidence of missing secondary market: Many investors with whom we have spoken, was assured, the share of funds is good for sale on the secondary market. This is in stark contrast to the reality. There is not a functioning secondary market for shares in closed-end funds. A sale of such funds is not and if possible only under considerable financial smears. This fact must be stated according to the case-law of the Bundesgerichtshof expressly. Against the background of this diverse advisory error, we see promising opportunities for the enforcement of claims for damages against consultants, banks and savings banks for the violation of duties of advice.