Germany’s dental pension scheme Versorgungswerk der Zahnärztekammer Berlin (VZB) is facing claims for damages from portfolio companies linked to its investment portfolio.
Grand Metropolitan Hotels Holding is seeking €120.5m in damages from VZB, which holds a 21.5% stake in the Dutch hotel operator.
The claim relates to allegations that the pension fund halted restructuring measures at the Fleesensee hotel complex in Mecklenburg-Western Pomerania, as well as to an allegedly advanced sales process.
“The accusations are unfounded and downright absurd,” VZB said in a statement.
The pension fund said its current management never received a binding purchase offer for Fleesensee Holding, nor was the economic success of the restructuring measures ever reliably foreseeable.
On the contrary, VZB said indications of irregularities – now under investigation – had emerged.
It also alleged that Grand Metropolitan Hotels Holding attempted to act “as an intermediary with itself” in the transaction, raising questions over commission payments.
Grand Metropolitan Hotels did not respond to a request for comment.
Separately, US asset manager New Age Alpha has raised claims that, according to VZB, are based in part on a “comfort letter” issued in January 2024 in relation to a planned fund acquisition.
“The accusations are unfounded and downright absurd”
German dental pension fund VZB
In the event of legal proceedings, the asset manager intends to seek damages worth millions of euros, VZB said. The pension fund considers the claims “legally unfounded and the amount incomprehensible”.
According to the scheme, its legal advisers informed the counterparty in September that the letter did not create any binding payment obligation. Instead, it was a non-binding letter of intent subject to several conditions.
VZB added that it would, in any case, have been legally prohibited from making a financing commitment to a company in crisis under German pension fund investment rules.
The pension fund also said New Age Alpha owes it more than $8.1m relating to convertible promissory notes issued in February and November 2024, including accrued interest. The loans matured on 31 December 2025.
VZB, which holds a majority stake in the asset manager, said it will assess structural options, including a restructuring or exit, in line with its legal and fiduciary duties.
Law firm Reinhardt Savic Foley, acting on behalf of New Age Alpha, said the asset manager had been attempting for months to reach a resolution with VZB to redefine the business relationship in both parties’ interests.
Following a prolonged period without response, the firm said, New Age Alpha escalated the matter by appointing legal counsel.
It now appears that VZB is willing to resume negotiations, with the asset manager welcoming renewed discussions, according to the law firm.
New Age Alpha hopes to reach a swift and mutually satisfactory outcome that would allow VZB to monetise its stake and address other outstanding issues.
Any potential transaction would be based on audited financial statements and an independent fairness opinion, the law firm added.
New Age Alpha is exploring all options and reserves all rights in relation to the matter.
VZB, which is seeking to recover €1.1bn in losses, expects audited 2024 results later this year.
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