AWB: Standard Chartered Bank case to return to district court

The US Court of Appeals has ordered a judgment previously made in favour of Standard Chartered Bank in an action against Australian agribusiness AWB Ltd. US unit be returned to a District Court in New York for reconsideration of the case key issues, AWB said Tuesday (September 1).

In January 2008, the District Court made a US$24 million judgment against AWB arising from a dispute as a result of default by Indonesian counterparties covering several US soy contracts to Indonesia in 2003 and 2004, AWB said in a statement.

Standard Chartered claimed that as a result of the payment default by the Indonesia counterparties, it was left with a financial shortfall and claimed damages against AWB.

AWB appealed the judgment and said it will "continue to press its case vigorously when the matter returns to the District Court."

AWB took a provision of US$24.2 million for Standard Chartered Bank in the 2008 half year accounts.