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[Alpha Biz=(Chicago) Reporter Paul Lee] KDB Life Insurance, an investor, will file a lawsuit against Meritz Securities, a sales and management company, and Hana Alternative Investment Asset Management in connection with the Frontera gas combined thermal power plant investment project in Texas, which incurred hundreds of billions of won in losses.
KDB Life Insurance suffered a total loss by investing $ 30 million in a $ 160 million gas power plant investment fund arranged by Meritz Securities and created by Hana Alternative Investment Asset Management.
Lotte Insurance, Teachers' Life, Teachers' Investment, Teachers' Credit Union Korea Exchange also participated in the investment.
According to The Korea Economic Daily on the 30th, KDB Life Insurance has decided to file a lawsuit against Meritz Securities and Hana Alternative Investment Asset Management for the return of unfair gains from the cancellation of the contract and damages for illegal activities in violation of investor protection obligations. KDB Life Insurance claims that Meritz Securities suffered losses because it did not provide enough information on investment risks.
The fund was created with the aim of providing funds for the operation of gas power plants in Texas. Investment firm Blackstone pushed for a subordinate mezzanine loan in 2018, and Meritz Securities raised a fund worth $160 million. Meritz Securities encouraged domestic institutions to invest, while Lotte Insurance and KDB Life Insurance invested $ 50 million and $ 30 million, respectively.
In December 2020, a problem arose due to the loss of EOD for priority loans from gas power plants. It was followed by a subordinate, the mezzanine loan EOD. In the end, the gas plant went through rehabilitation procedures and in August 2021, the fund repaid all of its loan bonds. Two and a half years after the investment was made, investors lost all their investments.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
