ADIB battles New York suit related to Al Gosaibi-al Sanea dispute - The National Newspaper

Abu Dhabi Islamic Bank (ADIB) is mired in a New York court battle over a US$40 million (Dh146.9m) trade finance deal involving commodity shipments to Taiwan and Spain.

Fortis Bank, a Dutch lender that merged with ABN Amro this year, sued ADIB in New York in June last year claiming the Islamic lender defaulted on its obligations under the deal.

The case relates to a letter-of-credit transaction signed in 2008 involving ADIB, Fortis and Awal Bank in Bahrain. Fortis extended the $40m credit in June 2008 to finance shipments of soybeans and maize from Brazil to Taiwan and Spain, according to court documents. ADIB “confirmed” the deal, effectively agreeing to repay Fortis after one year, the documents say.