Bawag Sued Once Again Over Refco Loans

Law360, New York (May 4, 2006, 12:00 AM EDT) -- An unsecured creditor of Refco Inc. has filed a fresh lawsuit against Austria’s Bawag PSK Group, expanding the bank’s legal woes only days after the Austrian government infused the bank with more than $1 billion to help with existing settlement costs.

The plaintiff, Bahamas-based Global Management Worldwide Ltd., sued Bawag amid rumors that Bawag was inching toward a $1.3 billion settlement with other Refco creditors that sued the bank for allegedly helping push Refco into bankruptcy through fraudulent loans.

The securities class action lawsuit was filed...
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