In early summer the court will turn first German investors, owners of Greek bonds, which have decided to seek their rights. After Greek investors have already filed a lawsuit in Athens, now the Germans will try to Germany to take legal action against the forced conversion of the debt.
Two law firms have already taken steps, following different approaches for action, wrote Handelsblatt.
“Even before the summer break we will bring an action before the federal court in Frankfurt,” said Andrew Lang, president of the firm Nieding und Barth in Frankfurt, which is a two digit number of injured investors with Greek securities worth 6.5 million euros.
These investors want to sue the Balkan country for violating an agreement on investment protection between Germany and Greece. Under the current agreement of sixty years, investors should be protected against political risks on the other side.
He said investment may be expropriated only in exchange for compensation of the value of the investment and it immediately or in advance, says Lang. Hence the plea because the mandatory replacement of long offset only a small part of the initial value of investments and the majority of the bonds will be repaid only after 20 to 25 years.
Association for the Protection of Capital Investors (SdK), which have already been contacted more than 700 injured investors feared by some, that only the Federal Republic may claim a protective agreement. It advised its members to use the services of CLLB office in Munich. She had already invited Greece to achieve an amicable settlement, but received no answer to the question deadline.
So now expected within two to three weeks CLLB first to submit complaints in various German cities and the seat of the depository bank. Currently, lawyers are still waiting to meet commitments under the legal costs of 20 clients. The claim must be against Greece for state removal of old bonds and issue new ones.
Attorney Lang believes that its claims court brings Frankfurt District Court, because according to EU legislation on consumer protection case should be heard by a court at the domicile of the plaintiff.
The purpose of lawyers is to get a precedent whose decision can then rely on other investors. Since the conversion of the debt has been applied in many different bonds, it is unclear whether this is possible. Otherwise, every investor should own to go all the way through the courts while taking requests. How long is this period is still unclear. CLLB expected to take three years.