ANZ Bank Settles With Oswals Over A$2.5 Billion Burrup ClaimBy
Bank to book charge of A$145 million to reflect settlement
Complex case had ‘residual risks’ for bank, CEO Elliott says
Australia & New Zealand Banking Group Ltd. said it reached a settlement with Pankaj and Radhika Oswal over the Indian couple’s A$2.5 billion ($1.9 billion) claim following a dispute about the 2010 sale of Burrup Fertilisers.
The Melbourne-based bank will book a charge of A$145 million for the year ending September 2016 to reflect the pretax impact of the settlement, it said in a stock exchange statement Thursday. The terms of the agreement are confidential.
“The settlement is the right decision for shareholders bearing in mind the residual risks in a case of this size and complexity,” ANZ Bank Chief Executive Officer Shayne Elliott said in the statement. The bank doesn’t accept many of the claims made in court and rejects the allegations against its staff, he said.
The agreement comes six years after receivers were appointed at Burrup Fertilisers, a Perth-based ammonia producer partly owned by the Oswals. ANZ said it had recovered all outstanding loans of about A$1.3 billion made from 2005 to the Burrup and Oswal groups.