Bawag, the Austrian bank, is suing Refco in a bid to recover a €350m ($410m) loan it made just hours before the company announced accounting mis-statements. It came as Man Group, the UK hedge fund, launched a £125m (€184m) rights issue to fund its purchase of the collapsed US firm.
Bawag said it had filed a legal complaint against Refco, Phillip Bennett, Refco's former chief executive, and 28 companies of the Refco group. It has alleged fraud, unjust enrichment and deception.
