TORONTO – Manulife Monetary Corp. (MFC.TO) says a Saskatchewan courtroom has dominated in its favour in its authorized struggle with hedge fund Mosten Funding LP over insurance coverage contracts.
Mosten had argued that below the phrases of the common life insurance coverage coverage, it might deposit a limiteless sum of money and obtain an annualized assured return of at the very least 4 per cent with one-month liquidity.
Nevertheless, Manulife says the ruling by the Saskatchewan Court docket of Queen’s Bench discovered the coverage in query “doesn’t present for limitless stand-alone funding alternatives inside the provider fund.”
The insurer says the ruling is in line with its place that the case was legally unfounded and commercially absurd.
Distinguished short-seller Muddy Waters had warned that if the courtroom had sided with Mosten, the hedge fund might promote a limiteless quantity of partnership pursuits backed by Manulife and “financially cripple” the insurer.
Manulife had argued that issuers of common life insurance policies by no means meant to have them operate as deposit or securities contracts, and disagreed with the short-seller’s conclusions.