Press release


Press release 13/40

Frequently asked questions – This document must be read in conjunction with the frequently asked questions 11/31 dated 23 September 2011 and the press releases 11/36, 11/48, 12/50 and 13/04

1. What has been the outcome of the proceedings in front of the Luxembourg administrative court?

On 21 August 2013 the Luxembourg administrative court of appeal has confirmed the judgment of the Luxembourg administrative first instance court concerning the CSSF’s decision of 29 August 2011 to refuse to grant a licence to ARM as a regulated securitisation undertaking under the Luxembourg law of 22 March 2004 on securitisation (the “Law”).

The judgment of the administrative court of appeal is final and cannot be appealed.

It follows that the decision of the CSSF to refuse a licence to ARM was lawful and has now become final.

2. When will a liquidator be appointed?

Accordingly and in line with the Law, the CSSF has asked on 4 September 2013 the Public Prosecutor to request the Luxembourg district court dealing with commercial matters to order the dissolution and the liquidation of ARM. When ordering the liquidation, the Luxembourg district court will appoint a supervisory judge (juge commissaire) and one or more liquidators.

3. When will the mandate of the supervisory commissioner terminate?

In line with the Law, the judgment ordering the dissolution and the liquidation of ARM will terminate the mandate of the supervisory commissioner.

4. What will the Luxembourg liquidation proceedings be about?

When ordering the liquidation, the Luxembourg district court will appoint a supervisory judge (juge-commissaire), who will be in charge of the supervision of the liquidation of ARM, as well as one or more liquidators.

The Luxembourg district court will outline the general principles of the liquidation. It may, at its discretion, render applicable the provisions applicable to the liquidation in bankruptcy.

The judgment ordering the dissolution and the liquidation of ARM will be published in the Luxembourg official gazette (Mémorial) and in two newspapers of adequate distribution as specified by the court, of which at least one must be a Luxembourg newspaper. These publications will be made by the liquidator.

These publications will indicate the time period during which the creditors of ARM may file their claims. Any creditor will have to indicate his name, first name, profession and address, as well as the amount and the basis for the claim.

The claims will be verified by the liquidator(s) in the presence of the supervisory judge (juge-commissaire). If any claim were challenged, the supervisory judge (juge-commissaire) may convene the creditor(s) to give some more details on the claim.

The liquidator(s) will bring and defend all actions on behalf of the company, receive all payments, grant releases with or without discharge, realise all the assets of the company and distribute the liquidation proceeds to the investors / creditors to which they are entitled.

The judgment ordering the liquidation suspends all seizures made by unsecured creditors and creditors not benefiting from preferential rights over movable or immovable property.

When the liquidation is completed, the liquidator will deliver a report to the court on the use made of the assets of the company and will submit accounts and evidence in support.

The court will then appoint one or more independent auditors to examine the documents. After receipt of the report from the independent auditor, it renders its judgment on the management by the liquidator and on the close of the liquidation.

5. What about the pending investors’ monies?

The Luxembourg liquidator will in his sole discretion, conclusively determine the pending investors issue and the legal ownership of these monies.

6. What is the role of the CSSF?

The CSSF does no longer have any role in the further process. This being said, it will disclose the name and the contact details of the liquidator(s) as soon as the judgment will be available. Further, if required, it will update the investors about the process.

7. Whom to contact for further questions?

Please send any further question to the email address