WestLB no longer rules out net loss for the year
In view of the challenging economic conditions, a possible need for adjustments in the value of participations and a generally weaker fourth quarter of 2009, the Managing Board of WestLB can no longer rule out the possibility of a net loss for the 2009 financial year.
As a result of the conditions imposed by the European Commission in May 2009, a servicing of the equity instruments requiring a net profit in the HGB single-entity accounts (hybrid Tier 1 and profit participation certificates), cannot be guaranteed. This includes the possibility of the equity instruments participating in a net loss for the year.
“WestLB's restructuring will be forcefully implemented in order to position us as a strong core bank for the consolidation process. We also will focus heavily on our client business and at the same time will keep a close eye on costs”, said Dietrich Voigtländer CEO of WestLB.
WestLB has offered a 10 year extension of maturity to the holders of the profit participation certificates falling due in 2009.