Credicorp Ltd. Form 6-K Summary
Business Context and Reporting Period
Credicorp Ltd., a Bermuda-based registrant, filed this Form 6-K on November 16, 2011, to report a material event to the Superintendencia del Mercado de Valores (SMV) in Peru. The filing concerns a legal action involving its subsidiary, Atlantic Security Bank (ASB).
Key Financial Metrics
This filing does not provide standard financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial figure disclosed relates to a specific legal claim: a lawsuit seeking approximately US$120 million.
Material Changes and Legal Contingency
The primary material event is a lawsuit filed in the U.S. Bankruptcy Court for the Southern District of New York by the trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. The trustee is seeking US$120 million from ASB, representing funds managed in the Atlantic US Blue Chip Fund that were redeemed from Fairfield Sentry Limited (a Madoff feeder fund) between late 2004 and early 2005.
ASB notes that the lawsuit targets only the withdrawn amounts and does not account for the total invested amount. ASB further states that after redeeming these funds, they were re-invested in Madoff through another vehicle, resulting in a loss of approximately US$78 million as of December 2008 for funds managed on behalf of clients.
Management Commentary and Outlook
ASB is currently discussing the scope of the claim with legal counsel and intends to take timely action to defend the case. The filing does not provide broader guidance, outlook, or risk factors beyond this specific litigation.
Key Facts for Investor Verification
- Litigation Amount: A claim of approximately US$120 million has been filed against ASB by the Madoff trustee.
- Historical Loss Context: ASB reports a separate loss of approximately US$78 million related to re-invested funds as of December 2008.
- Legal Strategy: ASB plans to defend the lawsuit, arguing the claim ignores the total invested amount.
- Financial Impact: The filing does not quantify the potential impact on Credicorp's consolidated financial statements or provide a provision for this liability.