Morales & Besa advises Merrill Lynch Corredores de Bolsa Spa in Fuentes Mechasqui, Patricio v. Alfa Corredores de Bolsa securities case
Merrill Lynch was sued, along with several other brokers, by the parent company of the bankrupt broker, Alfa Corredores de Bolsa, claiming the revocation of several sales of a certain stock made by the brokers and payment of the value of such stock.
This case has a substantial relevance for our stock market, as the issue being discussed is the effect of one the main procedures used by brokers and companies to obtain finance, the so called operaciones simultaneas (repos). A simultanea is a transaction that combines a spot purchase of shares together with a simultaneous sale and repurchase of the same securities at a subsequent specified date and purchase price. Simultaneas are typically used to finance the purchase of shares.
The team at Morales & Bes was led by Partner Gonzalo Cordero with Senior Associate Orlando Palominos and Associate Carlos Hafemann.