Bawag Sues Linz For € 418m

Politics ♦ Published: November 8, 2011; 20:04 ♦ (Vindobona)

The U.S.-owned bank now sues the Upper-Austrian capital. Linz has terminated a swap contract based on Swiss Francs.

Bawag Sues Linz For € 418m / Picture: © BAWAG

Bawag, which is held by the U.S. investment funds Cerberus, sues Linz and claims compensation for damages amounting to € 418m. In October, the swap contract has been terminated the city´s government. Besides the market value of the swap, which amounts to € 350m, also damages due to the termination occurred, the bank says.

The bank states to be entitled to sue Linz in return,…