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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] As domestic financial companies have faced a complete principal loss from their investment in the 'Margaritaville Hotel' located in Manhattan, New York, KB Securities, a key distributor of the private equity fund (PEF), has decided to refund up to 80% of the principal to affected investors.
This marks a reversal from their initial stance, which only promised a 30% compensation of the principal. Previously, Hana Securities, which resold part of the hotel fund, offered an unusually high compensation of 90% to its investors, prompting backlash from investors who had used KB Securities, leading the latter to increase its compensation offer. However, KB Securities plans to file a lawsuit against Hana Securities and others for damages.
According to reports from Hankyung.com on September 26, KB Securities began sending out detailed notices and consent forms regarding the revised compensation plan to investors through its branches starting from September 19. The plan includes an upfront compensation of 80% of the principal for individual investors and 75% for corporate investors, aiming to reach a private settlement with all investors. This private settlement is intended to resolve the compensation issue amicably without litigation.
The new compensation ratios significantly exceed the earlier proposals made to investors. In April of the previous year, when the fund's losses became apparent, KB Securities had initially secured consent from individual and corporate investors to advance 30% of the unpaid principal as part of the agreement.
However, after Hana Securities and other banks decided on a private settlement with their investors at 90% compensation for the same asset, investors who went through KB Securities strongly protested, claiming the disparity in compensation between companies was substantial.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
