Statement by Alexander Angueira, Attorney for Vivendi Holdings 1
Corp., Assignee of Claims Held by Elektrim Bondholders, Regarding
Lawsuit Filed on June 1, 2007, for Breach of Fiduciary Duty and Breach
of Contract against Law Debenture Trust Corporation, Plc (U.K.)and for
Fraud and Breach of Contract against Elektrim S.A.:
(SEE TEXT OF LETTER BELOW)
Alexander Angueira, of the firm of Stearns Weaver Miller Wiessler
Alhadeff & Sitterson, P.A., Miami Florida (305-789-3240), attorney for
Vivendi Holdings 1 Corp, issued the following statement:
On Friday, June 1, 2007, on behalf of my client, Vivendi Holdings
1 Corp., as the assignee of claims held by Elektrim Bondholders,
including General Motors Corp., I filed a lawsuit against Law
Debenture Trust Corporation (LDTC) and Elektrim S.A., Defendants in
United States District Court for the Southern District of Florida.
(Case No. 07-21431, CIV-KING).
Attached is a letter I sent on Sunday, June 3, to representatives
of Law Debenture Trust Corp., notifying it of the lawsuit and
demanding that it maintain the status quo and not release any funds
that it received from either Elektrim or Deutsche Telekom that relate
to the unlawful transfer from Elektrim to Deutsche Telekom of shares
of Polska Telfonia Cyfrowa Sp. z o.o. ("PTC"). Any release could
further prejudice to the Bondholders' rights to recover the value of
an equity kicker that was added to the bond instruments by a
Restructuring Agreement.
As set forth in the Complaint, the Law Debenture Trust Corporation
breached both its fiduciary duty and its contractual obligations when
it withdrew its bankruptcy petition against Elektrim SA while in the
possession of material information that it did not disclose to General
Motors or its financial advisor, Everest Capital Ltd. If that
information had been disclosed, both General Motors and Everest
Capital would not have supported withdrawal of the bankruptcy
petition, and General Motors and Everest Capital would have retained
the right to recapture assets that Elektrim had fraudulently
transferred, including shares of Polska Telfonia Cyfrowa Sp. z o.o.
("PTC") that were illegally transferred to Deutsche Telekom.
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*T
June 3, 2007
Via Facsimile and Electronic Mail
The Manager, Trust Administration
The Law Debenture Trust Corporation p.l.c
VIA FACSIMILE:
The Law Debenture Trust Corporation p.l.c
VIA FACSIMILE:
Re: EUR 510,000,000 Bonds due 2005 issued by Elektrim Finance B.V. and
Guaranteed by Elektrim S.A. ("the Bonds")
Dear Sirs,
I represent Vivendi Holdings 1 Corp., the assignee of all claims held
by, among others, General Motors Corp. ("General Motors") with
respect of its holding, through Everest Capital Ltd. ("Everest"), of
Elektrim Finance BV 2% bonds due 12/18/2005.
On June 1, 2007, Vivendi Holdings 1 Corp. filed suit against Law
Debenture Trust Corporation p.l.c. ("LDTC") and Elektrim S.A. in the
United States District Court for the Southern District of Florida.
Among other things, the Complaint alleges that LDTC (i) breached its
fiduciary duty to General Motors and other Elektrim bondholders and
(ii) breached the Second Supplemental Trust Deed, when it failed to
disclose material information to the bondholders prior to the
bondholders' decision to withdraw their bankruptcy petition against
Elektrim and when it knowingly accepted proceeds of an illegal
transaction. The Complaint seeks damages and an injunction requiring
LDTC to hold in escrow the proceeds relating to the illegal transfer
to Deutsche Telekom AG ("DT") of shares of Polska Telfonia Cyfrowa
Sp. z o.o. ("PTC").
By this letter, I demand that LDTC maintain the status quo and not
disburse or transfer any funds relating to the illegal transfer of
PTC shares until the District Court has resolved the issues raised by
the Complaint. Any disbursement of the funds could prejudice General
Motor's rights and those of Vivendi as assignee to additional funds
from Elektrim under the Debt Restructuring Agreement as set forth in
the Complaint.
Further, as the attorney for these Elektrim bondholders, I demand that
you immediately send me all documents in LDTC's possession, custody,
or control relating to the Elektrim bonds.
This letter is sent without prejudice to the legal position and any
rights and claims that Vivendi Holdings I Corp. might have in any
existing or future court or arbitration proceedings.
Sincerely,
Alexander Angueira
*T