Bawag Inches Closer To Settlement With Refco Creditors

Law360, New York (April 28, 2006, 12:00 AM EDT) -- After Refco Inc. creditors sued Bawag PSK Group for more than $1.3 billion over allegations that it helped push Refco into bankruptcy through fraudulent loans, the embattled Austrian bank has said it will make a compromise settlement with creditors if approved by the U.S. Bankruptcy Court.

Bawag would accept some costs if it was able to resolve the matter out of court, according to Chief Executive Ewald Nowotny in an interview with Austrian public television ORF.

The possible compromise is estimated to be between $375 million...
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