Triamant Bondholders Lose Appeal: No €16 Million Compensation, Must Pay Legal Costs

Bondholders of the bankrupt Belgian care group Triamant have been unsuccessful in their attempt to secure €16 million in damages from two former administrators. A court in Hasselt, Belgium, ruled against the 107 bondholders, who claimed they were misled when investing in the group’s bonds prior to its collapse. The bondholders will also be responsible for covering the associated legal expenses.

Background: The Triamant Collapse

Triamant, a residential and care group based in Bree, Belgium, previously issued bonds with a minimum investment of €100,000. Investors were promised attractive returns, with the revenue partially offset against monthly rental costs for residents. However, the group encountered financial difficulties and ultimately filed for bankruptcy, leaving investors uncertain about recovering their investments. The bankruptcy proceedings are still ongoing.

The Lawsuit and Claim for Damages

The bondholders alleged they were deliberately misled at the time of their investment. They sought €16 million in damages from two former administrators, arguing that they were not provided with sufficient information regarding the financial risks associated with the bonds. This legal action was pursued separately from the ongoing bankruptcy proceedings. VRT News reports that the court found insufficient evidence to support the claim of misrepresentation.

Court Ruling and Implications

The court determined that the plaintiffs failed to demonstrate sufficient evidence of being misled when initially investing in the bonds. The bondholders’ claim for €16 million in damages was dismissed. They are now obligated to cover the substantial legal costs incurred during the proceedings. HLN details the financial burden now placed on the investors.

Ethias Involvement

While not directly related to the current ruling, Ethias SA has been involved with Triamant in the past, facing market risks related to interest rates and partially complying with certain obligations.

The outcome of this case underscores the risks associated with corporate bond investments, particularly those involving smaller or financially vulnerable companies. Investors should conduct thorough due diligence and seek professional financial advice before making significant investments.