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Meinl Bank owner takes Austria to court over probes into bank

Published 05/08/2015, 11:10 pm
Updated 05/08/2015, 11:16 pm
© Reuters.  Meinl Bank owner takes Austria to court over probes into bank

VIENNA, Aug 5 (Reuters) - The owner of Austria's Meinl Bank is suing the Alpine nation's government for at least 200 million euros ($218 million) in an international arbitration court in an attempt to bring an end to years of investigations into the bank and its officials.

Julius Meinl V, chairman of the bank, was arrested in 2009 and later released on record bail of 100 million euros as part of investigations centred on a potentially wrongly inflated dividend payment for the financial year 2008.

He is part of the Meinl family, which founded one of Austria's most recognised brands running food and coffee stores.

An Austrian court threw out breach of trust charges against Meinl V in April, saying they needed more investigation.

The Washington-based International Centre for Settlement of Investment Disputes (ICSID) has now registered claims brought by Far East, the owner of Meinl Bank, against the Republic of Austria. The claim is being brought under an investment protection treaty between Austria and Malta, where Far East is based.

Far East says Austria has breached international law and its treaty obligations by failing to provide fair treatment of Far East's investment and has damaged its investment.

"This arbitration seeks justice for one of Austria's most esteemed family businesses that has been dragged through the mud in public fashion," Kenneth Reisenfeld, BakerHostetler partner representing Far East said in a statement.

He said he hoped ICSID would order Austria to cease investigations and compensate Far East for the damage to its investment.

No one at the financial procurator's office in Austria, which represents the legal interests of the country, was available to comment on the case.

The finance ministry said the accusations of discrimination made in the filing were completely without basis.

($1 = 0.9183 euros)

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