A PROPOSED #900m compensation offer to aggrieved Lloyd's of London
investors received a serious setback last night when a crucial vote was
defeated.
Members of the Gooda Walker syndicates, which alone lost more than
#900m, rejected the offer which Names -- the individuals who mainly fund
the market -- must decide whether to accept by February 14.
The vote was five to one against and the decision was described by
Lloyd's as ''regrettable''.
The compensation package offers up to half the losses suffered by
17,000 Names if they forfeit claims against future losses and drop legal
action alleging negligence. Members of other major syndicates have
recommended rejection of the offer.
A Lloyd's official said: ''It is regrettable because it is one of the
largest of the action groups in terms of payments due from the
settlement fund.'' Gooda is due for #220m of the fund.
''We provided them with certainty and money now in return for no
action against members and managing agents -- we put together what we
believed was the best offer.''
But Michael Deeny, chairman of the Gooda Walker action group, said
they were entitled to a higher offer and ''protection against liability
for future losses''.
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