Van der Moolen Holding N.V. files for bankruptcy
The administrators of the trading firm Van der Moolen Holding N.V. ("VDM") have requested the Court of Amsterdam to convert the provisional suspension of payments, which was granted on August 10, into bankruptcy. This became necessary since the ongoing expenses, including the salaries of the employees could no longer be paid during September. Furthermore, it became apparent during the last weeks that there are no possibilities to sell VDM or to continue as a smaller company. The Board of VDM will not resist the request to the Court. The request is expected to be granted in the morning of September 10, 2009, and would come into effect retroactively as of 00.00 hours.
Administrators - most probably receivers as of September 10, 2009 - expect that, even with the best possible return on sale or liquidation of parts of VDM, there will be on balance insufficient means to make a payment to the holders of ordinary shares of VDM.
The bankruptcy of VDM can be attributed to a combination of factors that appeared in a period of a number of years: big losses in the US, unsuccessful new initiatives like Online Trader, decreasing revenues in connection due to the financial crisis and a cost pattern that structurally exceeded the benefits. Ultimately two factors have accelerated the erosion of the liquidity position of VDM: the purchase of treasury shares, and the delay in the collection of (tax) claims of VDM.
The consequence of the bankruptcy will be that VDM will be liquidated. The assets and activities of the subsidiaries will be realized into cash as much as is possible. Van der Moolen Financial Services B.V. has been sold at intrinsic value. Investigations for possibilities to transfer trading positions at Euronext and other European exchanges are in an advanced stage. Also the future of the American business is still subject of investigation.
An explorative meeting of shareholders will take place at October 9, 2009 at 9:30 hours at a location to be determined; the agenda of the meeting will be published on the website of VDM.
Administrators/ receivers together with the VDM Board will give a press conference at Thursday September 10, 2009 at 14:00 hours at the premises of Van Doorne N.V., Jachthavenweg 121, 1081 KM Amsterdam.
The Board and Administrators of Van der Moolen Holding N.V.