From 2006-2007, some financial institutions such as Banco Santander, Banco Popular and Caixabank, through their private banks, began to market bonds, convertible bonds and promissory notes of the now dying Abengoa. Those who bought them are Abengoa’s retail shareholders.
The marketing of these products would be nothing special if, as one would expect, it had been carried out as a form of business-to-business financing. The offer of these products, with a very attractive interest rate but also with a high risk, should have been made to an audience made up of expert companies, with in-depth financial and market knowledge, precisely because of their complication and risk.
However, Abengoa’s bonds, convertible bonds and promissory notes were not always marketed in this way, but private banks also turned to individuals and retailers to offer them these products, which by nature are aimed at a different sector of the public.
An attractive interest rate, a lack of transparency in the information and the non-completion of the suitability and suitability tests were the elements that combined to make these sales possible.
The result: around 10,000 minority shareholders of Abengoa affected by the company’s bonds, convertible bonds and promissory notes with an average investment of 50,000 euros per head, which means a total of approximately 50 million euros.
On the other hand, the financial institutions, at the same time as they were marketing these products to individuals and retailers, were cutting off their line of financing to Abengoa. They did not believe in the company and decided, legitimately, to turn off the tap.
A problem then arose for the banks: how to recover the millions of euros they had invested in the Andalusian company? The financial institutions were Abengoa’s main creditors and, therefore, also the main ones interested in securing new financing for the company.
It was then that different private banks began to market Abengoa’s bonds, convertible bonds and promissory notes to a public that might not be able to pass the suitability and appropriateness tests and often without providing fully transparent information.
In this way, they were achieving a triple objective: to obtain financing for Abengoa, of which the bank was a creditor, to avoid the high risk involved in its financing and to charge for marketing the product.
A perfect move if it were not for the fact that it is possible to claim against the banks that marketed these products through the courts by demonstrating the nullity of the contract due to a lack of consent and, in this way, recover the totality of the investment made plus the legal interest. At Bufete Salmerón we know how to do it, more than 10 years of experience in banking law is our guarantee. If you are affected, call us on 954 536 038 or 695 694 847 and we will study your case without obligation.