BNP 'Dropped The Ball' In $650M Sukuk Finance Deal

Law360, London (December 8, 2017, 5:23 PM GMT) -- French bank BNP Paribas “dropped the ball” and breached its duty to a group of New York hedge funds when it negligently arranged a $650 million Islamic finance transaction that was invalid and unenforceable under Saudi Arabian law, a U.K. High Court judge ruled Thursday.

In a decision handed down by Judge Stephen Males, BNP was found to have breached its duty to Fortress and Cyprus, two New York hedge funds specializing in distressed debt, by failing to take reasonable care to ensure an Islamic bond, or sukuk, sold to them by a Saad Trading, Contracting & Financial Services Co. subsidiary...

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