• Wave of Insolvencies with Respect to König & Cie. Ship Funds
  • March 18, 2014 | Author: Michael Rainer
  • Law Firm: GRP Rainer LLP - Munich Office
  • Three ships of König & Cie. appear to be currently on brink of insolvency. The affected ships are the container ship MS King Julius and MS King Justus as well as the freighter MS Stadt Schwerin.

    GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Dusseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London - www.grprainer.com/en conclude: Bad news for investors in ship funds of the issuing house König & Cie. As reported by the “funds telegram”, the companies of the ships MS Stadt Schwerin (Az.: 5 IN 29/14), MS King Julius (Az.: 5 IN 19/14) and MS King Justus (5 IN 30/14) have been placed under insolvency administration.

    The container ships MS King Justus and MS King Julius were purchased at an auction by König & Cie. in 2012 and brought under the umbrella fund König & Cie. Renditefonds 75 Schiffahrts Investment I. The freighter MS Stadt Schwerin belongs to the König & Cie. Renditefonds 45, which was launched in 2005. The strategy pursued by Renditefonds 75 Schiffahrts Investment I was to buy ships at a good price and sell them again at a profit. Investors were able to take a share over a term lasting until 2018 with a minimum deposit of 10,000 euros. For the investors, the current financial difficulties facing the funds mean that they are threatened with massive financial losses.

    In order to avert damage, they should turn to a lawyer versed in the fields of banking and capital market law. He can review their legal possibilities and, if appropriate, take the necessary steps.

    For example, there might be possible claims for damages triggered by inaccurate investment advice, as the investors have acquired company shareholdings with the fund shares which by their nature expose you to risks as well as opportunities. For the purposes of investor and issue-specific advice, the investors must be comprehensively informed about these risks. Thus, a capital investment with a risk of total loss is not suited to a pension scheme.

    Moreover, the investors ought to have been informed about all commissions received by the intermediary bank. These so-called Kick-Backs can be an important indicator of whether the bank has potentially placed its interest in receiving commission above the wishes of the client.