Nordbanken treated Penser correctly; The decision is a victory for the rule of law

Nordbanken treated Penser correctly; The decision is a victory for the rule of law It is satisfying that Nordbanken has now gained confirmation that the bank's efforts to save Nobel Industries was carried out in a proper manner and that Yggdrasil's/Erik Penser's claims on the bank are groundless. The decision is also a victory for the rule of law. Contractual agreements must be upheld and the market valuation of a company on the stockexchange must be valid, comments Nordbanken Holdings' Chairman Jacob Palmstierna. Proper treatment of Penser The significance of the court's ruling is that Nordbanken did not "steal" Nobel from Erik Penser. Nobel Industries was properly valued in the bank's settlement with him. This is extremely satisfying that Nordbanken has received confirmation that the actions taken during the Nobel crisis in autumn 1991, including the treatment of Penser personally, were correct. Nordbanken's assumption of responsibility in the Nobel crisis has been costly and painful for the bank. But it was necessary to protect the bank's receivables and to eliminate the threat of collapse for Nobel Industries, with the risk of substantial unemployment. Considering Nobel's extensive foreign, short-term borrowing, the measures taken were also required to protect the possibilities for Swedish companies and the Swedish State to borrow on the international capital market. Rule of law confirmed The case in the Stockholm District Court has also involved important legal principles in a market economy, that is, that a contractual agreement must be upheld and that the market valuation of a company on the stock exchange is valid. Firstly, contractual agreements must be upheld. The claim was that Yggdrasil when owned by Penser should receive a much higher payment for the Nobel shares than the company received as a subsidiary of Nordbanken. The ruling confirms that a new owner of a company cannot re-interpret agreements reached by the company earlier. Secondly, the market valuation of a company on the stock exchange must be valid. It is a myth that there was any surplus value in Nobel. On the contrary, the bank saved Nobel and Penser from bankruptcy. Nobel's financial position had been undermined through mixing Gamlestaden's loan losses and financing of long-term investments with short-term borrowing. Without the agreement with Nordbanken, the company would have gone bankrupt. At the same time, Penser had personal debt and guarantee commitments of slightly more than SEK 1.7 billion which the bank under the pressure which prevailed in the Nobel affair was forced to write-off, saving Penser from personal bankruptcy. Both parties should accept the ruling It is regretful that Erik Penser, despite his settlement with Nordbanken, has maintained a legend of being a victim of back-stabbing. As a consequence of the ruling now announced, it is Nordbanken's hope that Penser and his companies as well as others accept the facts and the fundamental legal principles. Further information: Jacob Palmstierna,+46 8 614 78 00 Bertil Södermark, +46 8 670 57 50 Karl Erik Danielsson, +46 8 670 66 00