Bawag Gets Shot In The Arm For Refco Settlement

Law360, New York (May 2, 2006, 12:00 AM EDT) -- As Bawag PSK Group moves toward a settlement with creditors of Refco Inc., the embattled Austrian bank received a $1.13 billion boost from the Austrian government, major banks and insurers Tuesday to help Bawag cover the cost of the settlement.

Creditors of the bankrupt brokerage firm sued Bawag claiming it helped push Refco into bankruptcy through a series of fraudulent loans, and asked for $1.3 billion in return.

The suit has led to ongoing negotiations between the two parties. Bawag Chief Executive Ewald Nowotny said at...
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