Troubled German property financier Hypo Real Estate has said it will welcome the opportunity to defend its decision in court to dismiss former CEO Georg Funke from the board. Funke resigned as CEO last October after the bank managed to secure a EUR 50 bn public-private bail-out to save it from collapsing due to the credit crunch. Hypo Real Estate terminated Funke's contract of employment in December last year.
Troubled German property financier Hypo Real Estate has said it will welcome the opportunity to defend its decision in court to dismiss former CEO Georg Funke from the board. Funke resigned as CEO last October after the bank managed to secure a EUR 50 bn public-private bail-out to save it from collapsing due to the credit crunch. Hypo Real Estate terminated Funke's contract of employment in December last year.
Commenting on the news that Funke is mounting legal action over his dismissal, the supervisory board of Hypo Real Estate re-iterated its position in a statement on Friday that his employment was terminated 'based on investigations conducted', and an independent legal memorandum.
'The supervisory board maintains its legal position, and is also prepared to have it reviewed in the courts,' the company said. 'The supervisory board and the management board are dedicated to analyse and resolve Hypo Real Estate's past, as a matter of utmost priority.'
The supervisory board praised the performance of the new management board put in place last October. 'Having created transparency and stabilised Hypo Real Estate Group, the new management board designed a concept for the group's strategic realignment, repositioning it as a specialist for real estate and public-sector finance, with a funding strategy focused on Pfandbrief issuance.'
