Vienna and Amsterdam-listed Atrium European Real Estate has announced that it has laid a long-running dispute with former major shareholder, Austria's Meinl Bank, to rest. The two sides have reached an agreement that resolves all disputes between them.
Vienna and Amsterdam-listed Atrium European Real Estate has announced that it has laid a long-running dispute with former major shareholder, Austria's Meinl Bank, to rest. The two sides have reached an agreement that resolves all disputes between them.
In August 2010, Atrium announced it was suing Meinl Bank, the bank's supervisory board chairman Julius Meinl V, its chief executive, and former managers of Atrium for more than EUR 2bn in damages. The claim related to losses allegedly suffered by Atrium prior to 1 August 2008 under the former management, when it was known as Meinl European Land.
The conflict escalated a few months later when the Austrian private bank announced it would sue Atrium's new board and management for damages of at least EUR 1.2 bn.
The claim and counter-claim have now been dismissed following the settlement. Gazit-Globe and other Atrium investors are also parties to the deal.
Atrium said the settlement means neither side will have any obligation to indemnify the other and Meinl Bank has been replaced as trustee of all of Atrium's bond programmes. Meinl Bank will also release all Atrium assets it holds, including $15 mln in cash.
'This settlement will enable Atrium to focus on a forward-looking strategy rather than historical issues,' according to Atrium.
The deal will take effect no later than January 2012. In the meantime, all proceedings between Atrium and Meinl Bank have been suspended.
