The Cierco Brothers Intend to Take All Necessary and Appropriate Action Against JC Flowers & Co. and the Andorran Government to Block the Expropriation of Banca Privada d'Andorra

JC Flowers has shown disregard for transparency and credibility in the financial community, and their selection is the final proof of the rigged and illegal process managed by the Andorran Government

ANDORRA, April 26, 2016 /PRNewswire/ -- Ramon and Higini Cierco, the majority shareholders of Banca Privadad'Andorra ("BPA") will take all necessary and appropriate actions against JC Flowers & Co. and the Andorran Government to block the illegal expropriation of BPA.

JC Flowers & Co.'s bid for BPA is another dispiriting chapter in a process shrouded in secrecy and devoid of accountability, due process, and the rule of law.  The Ciercos cannot understand why a U.S private equity fund with i) a questionable investment track record, ii) a history of rejection by the Spanish government in its attempts to acquire a financial institution in Spain and iii) in poor financial condition  is the chosen solution to a problem of Andorra's own making.¹ J. Christopher Flowers, the CEO of the company, once described their business model as "lowlife grave dancers."² JC Flowers & Co. currently face their own financial restructuring problems, legal claims, and reputational harm as its investors learn that their funds are "exposed to several faltered deals, including MF Global".³ JC Flowers & Co. is not a serious or responsible option to resolve this debacle that has been mismanaged by the Andorran Government from the beginning until today.

With regards to the selection of  JC Flowers, the Chairman of BPA's Andorran administrator, stated, "The selected offer achieves every single objective pursued by the Resolution Plan for Banca Privada d'Andorra (BPA)." This is a ludicrous continuation of Andorra's attempt to avoid accountability for the mismanagement of this process and the squandering of value and loss of Andorran jobs. There can be little doubt that JC Flowers & Co. is acquiring BPA assets at a bargain basement price and is likely to terminate employees, strip assets, reduce customer service and contribute nothing to the Andorran economy or financial sector.  It is the Ciercos who have continually attempted to pursue a constructive dialogue that preserves value, jobs, and customer service while maximizing the future prospects of the Andorran financial sector.  All of the Ciercos' attempts at constructive dialogue for the benefit of all stakeholders have been thwarted by the Andorran authorities.  Although the fine print of the deal has not been made public, it appears that JC Flowers will only put up a tiny amount, 7.5 million euros at closing, and any future payments are highly contingent.  Why would Andorra shut down a bank worth in excess of 500 million euros and then sell it at a knock down price without any assurances that this deal will be good for the Andorran financial sector, Andorran jobs or the reputation of Andorra?  This is simply a continuation of the cover-up by the Andorran authorities of their own incompetence.