SNS Reaal Offers Bondholders $66 Million Ahead of Court Ruling
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SNS Reaal NV offered to pay 50 million euros ($66 million) to some holders of subordinated debt seized during the Dutch bank’s nationalization, while others seeking compensation will have to await a court ruling.
SNS didn’t properly inform investors of the risks associated with buying the participation certificates, a type of subordinated debt, the Utrecht-based bank said in a written statement today. The compensation for buying the bonds sold in June 2003 is equal to the nominal value plus interest investors would have earned on 10-year government bonds, it said.