The government is in negotiations to settle the thorny preferential share debacle. Up until now, few legal complaints filed by angry shareholders have been justified.
The courts have only recognized only 26 of more than 3,000 complaints filed against Novagalicia, suggesting that investors who bought preferential shares are not a particularly special or risky group. The solution that the government is pursuing, nontheless, would benefit all parties by avoiding legal action and establishing a general procedure to follow.
This would consist of giving an instant deduction to people who own the preferential shares, but the deducation would actually be paid out over time. The decision compares to one applied in Ireland for those who experiences losses related to institutional investments.
