11 Apr 2015

Super embroiled in legal battle

11:05 am on 11 April 2015

New Zealand's state pension fund is gaining powerful allies in its legal battle over who should repay a billion dollar structured loan made to Portugal's Banco Espirito Santo weeks before its collapse last year.

business profit loss

business profit loss Photo: 123rf

Bloomberg reports the Goldman Sachs banking group, and one of India's richest men - Lakshmi Mittal -- are joining the battle in a London court.

The lawsuits relate to a company set up by Goldman Sachs to raise funds so the Portuguese bank could finance an oil refinery.

A bailout by Portugal's central bank salvaged some assets, but junior creditors had significant losses.

The New Zealand Superannuation Fund lost $200 million.

Those creditors are now suing to have Novo Banco have to repay them about $813 million dollars.