Exclusive Exclusive: Maple Bank Creditors Demand €3.3 Billion from German Subsidiary

Creditors of the insolvent German subsidiary of Canada’s Maple Bank are demanding a total of €3.3 billion, or $3.68 billion, Handelsblatt has learned, making it one of the largest ever bankruptcies in Germany. Maple Bank’s German subsidiary was forced to close its doors earlier this year after facing a potential fine of hundreds of millions of euros over alleged tax avoidance schemes involving dividend stripping . In total, 236 creditors have registered claims. The largest is the deposit insurance fund of the Association of German Banks, the country’s private banking lobby, which has handed out €2.6 billion through two different funds to bail out most depositors and investors in the bank. The German state of North-Rhine Westphalia is also among the creditors, having invested €62.5 million in time deposits. The banking association’s deposit insurance fund covers €59.8 million per investor, leaving the state with a potential loss of €2.7 million. It is unclear how much money creditors will win back from their claims. Insiders said the insolvency process at Maple Bank is in a difficult phase and its outstanding tax liabilities are still unclear. The dividend stripping scandal has affected more than 100 banks operating in Germany, but Maple Bank was the first to declare insolvency as a result. Germany’s finance regulator BaFin forced the bank to close its doors in February, after it became apparent that the bank was setting aside an significant funds to repay tax authorities.   Read the full story in Friday’s Handelsblatt Global Edition at 12:00 CET. Picture Source: Frank Rumpenhorst /DPA/ Picture Alliance