AWB to appeal against US court decision Article from: AAP
November 20, 2007 12:00am
GRAINS exporter AWB will appeal against a court decision that has awarded $US35 million against the company's US arm in relation to a commercial dispute with the Standard Chartered Bank.
AWB said today that AWB (USA) Ltd had received a preliminary ruling from the US District Court for the Southern District of New York in favour of Standard Chartered Bank.
The court had issued oral findings of fact and conclusions of law directing the entry of judgement against AWB (USA) Ltd for $US35 million.
"AWB remains confident it has a very strong position and will vigorously appeal this ruling," AWB said in a statement today.
In February 2005, Standard Chartered Bank brought an action against AWB (USA) Ltd over a long-standing commercial promissory note dispute.
The dispute arose as a result of default by Indonesian counterparties covering several US soybean contracts to Indonesia in 2003 and 2004.
Standard Chartered Bank claims that as a result of payment default by the Indonesian counterparties, it was left with a financial shortfall and claimed compensation from AWB (USA) Ltd.
AWB shares were eight cents lower at $2.68 today.
AWB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
