26 August 2008
In a move to protect its Shareholders’ Rights ADCB Participates in a Class Legal Action in New York
Abu Dhabi, August 26, 2008:
Abu Dhabi Commercial Bank (ADCB) has today announced that it will participate in a class legal action in New York, ADCB’s participation in this legal action is a positive step aimed at recovering losses suffered by it and other GCC investors from U.S. asset-backed securities investments. .
ADCB will act as the named plaintiff in the class action, which has arisen as a result of investment in the Cheyne structured investment vehicle (SIV). The Cheyne SIV, structured, sponsored and rated by a leading U.S. investment bank and the leading rating agencies, was one of the largest investment vehicles set up to invest in U.S. asset-backed securities, including residential mortgages. The Cheyne SIV entered receivership in September 2007. ADCB has already fully disclosed any losses it suffered from these investments.
ADCB also announces today, that it has held talks with other GCC banks and investors about joining this class action, and based on these conversations, ADCB expects additional investors to join or support the legal action as required.
This class legal action will be one amongst many dozens of legal actions already filed in the US by global investors against large, global financial services firms related to investments in asset backed securities. The legal action alleges, amongst other things, that ADCB wasmisled about the quality of the underlying mortgages in which the Cheyne SIV would invest.
ADCB’s Chief Executive Officer, Mr Eirvin Knox, commented:“This is the next step in a process aimed at recouping the losses ADCB has already incurred, and additionally, this is an important step in paving the way for other GCC investors to ensure they are provided an opportunity to recover their own losses. This is the right thing to do and ADCB has taken a proactive early lead to protect itself and other investors.”
ADCB is a full-service commercial bank which offers a wide range of products and services such as retail banking, wealth management, private banking, corporate banking, commercial banking, cash management, investment banking, corporate finance, foreign exchange, interest rate, currency, derivative and Islamic products, project finance, property management and strategic investments.
ADCB is owned 64.8 percent by the Abu Dhabi Government through Abu Dhabi Investment Council. Its shares are traded on the Abu Dhabi Securities Market in Abu Dhabi.
ADCB was recently named “Bank of the Year 2008” by Banker Middle East Magazine.
ADCB: T. 02- 6962588
Head, Corporate Communications
US Media enquiries:
Sloane & Company: T. +1 212 486 9500
UK Media enquiries: T. +44 207 002 1080
Alex Child Villiers
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