Bank Recovers $39 Million in Enron Loan Proceeds; Summary Judgment Allows Full Recovery from Other Participating Bank.Business Editors NEW YORK--(BUSINESS WIRE)--May 21, 2003 In a major international banking case related to the Enron bankruptcy, the New York branch of Bayerische Hypo-und Vereinsbank AG ("HVB HVB Hervey Bay, Queensland, Australia (Airport Code) HVB Hawaii Visitors Bureau HVB Central-European International Bank (Hungary) HVB High Volume Breeder (puppy mill) ") obtained summary judgment of $39 million plus interest from the Italian Bank Banca Nazionale Del Lavoro Banca Nazionale del Lavoro SpA is an Italian banking firm. Founded in 1913 as Istituto di Credito per la Cooperazione, it was nationalized in 1929. It was re-privatized and listed on the Milan Stock Exchange in 1998, before being acquired by French banking group BNP Paribas , S.p.A ("BNL BNL Brookhaven National Laboratory (Upton, NY) BNL Bibliothèque Nationale de Luxembourg (French) BNL Banca Nazionale del Lavoro BNL Berkeley National Laboratory BNL Bare Naked Ladies ") on Friday, May 16, in a dispute over which bank should bear the loss for funds advanced on Enron's behalf on the eve On the Eve (Накануне in Russian) is the third novel by famous Russian writer Ivan Turgenev, best known for his short stories and the novel Fathers and Sons. of its bankruptcy. In dispute was a $39 million draw that Enron's contractor made on a letter of credit that HVB had issued and administered, but in which BNL had purchased a 100% risk participation interest. The draw occurred almost immediately upon Enron's bankruptcy filing. When HVB demanded reimbursement from BNL, BNL refused, claiming that HVB should not have permitted the draw. The United States Bankruptcy Court for the Southern District of New York disagreed, finding that "HVB acted consistent with the Duty of Care and its obligation to act in Good Faith." "This is one of the largest Enron-related recoveries obtained through litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. thus far," said Brian Cogan, the partner at Stroock & Stroock & Lavan LLP LLP - Lower Layer Protocol who represented Bayerische Hypo-und Vereinsbank AG. "It properly allocates the burden of having dealt with Enron to whom the banks intended. BNL agreed to take the Enron risk on the Letter of Credit. That risk looked good when Enron was trading at $83 per share. As the Court found, BNL cannot avoid the risk now that it has materialized." Stroock & Stroock & Lavan LLP is a law firm with market leadership in financial services, providing transactional and litigation expertise to leading investment banks, venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] , multinational corporations and entrepreneurial businesses in the U.S. and abroad. Stroock's practice areas concentrate in corporate finance, legal service to financial institutions, energy, insolvency & restructuring, intellectual property and real estate. |
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