Bank of Tokyo-Mitsubishi UFJ, Ltd v Baskan Gida Sanayi VE Pazarlama AS & Ors [2008] EWHC 659 (Ch)

9 April 2008

This case involves two international banks in a claim for conspiracy, deceit and negligent misstatement against 14 defendants arising out of a trade finance deal. 

The Banks provided a €35 million pre-export trade finance facility to the first defendant (a Turkish hazelnut exporter) to fund specific sales of hazelnuts to companies in the Ferrero Group, which were to be repaid by the Ferrero companies direct to the Banks. 

After drawing down most of the facility, the first defendant transferred its business to a nominee in an effort to defraud the Banks.  The Banks contend that the defendants (including Ferrero) conspired to achieve these ends, and that Ferrero made a number of fraudulent (alternatively negligent) statements to induce the Banks to lend. 

There are also proprietary and tracing claims, both under English and Turkish law.

Law Report (link to full report/decision/judgment)

John Wardell QC