So far, the automatic enforcement of a pledge under the law of 5 August 2005 on financial collateral arrangements (the "2005 Law") had been interpreted by some as a barrier to the annulment of such enforcement. On July 10th 2013, the District Court of Luxembourg, in a commercial judgment (No 1089/13, roles No. 120206, 121127 and 122468), gave a judicial interpretation to this issue, ordering the pledgee PILLAR SECURITISATION S.à r.l., to return to the pledgor, R CAPITAL S.à r.l.(represented by Bonn Steichen & Partners) the shares of IMMO-CROISSANCE SICAV-FIS, which are in its possession following the abusive and fraudulent realization of the pledge.

The Court first reminded that the 2005 Law allows the realization of a pledge without any judicial intervention under the sole condition of apparent regularity. The Court then specified that, in principle, the pledgor can not oppose any defences to this enforcement, however, the 2005 Law shall not preclude, in presence of a manifest fraud, to order the return of assets which appropriation has proved to be abusive, otherwise the pledgor would be deprived of any recourse.

The judgment given from the 15th division of the District Court of Luxembourg is subject to appeal before the Superior Court of Justice.

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