European private equity fund Abris Capital Partners is suing Poland for $597m, claiming that the state’s decision to force the sale of FM Bank PBP has resulted in losses.
Earlier this year Poland’s financial watchdog KNF stripped the fund of all its voting rights in the bank and ordered it to sell the business by April next year.
KNF ruled that the fund failed to meet its commitments as an investor in FM Bank PBP.
FM Bank PBP was created in 2013 through a merger of two Abris-owned banks.
The watchdog argued that Abris did not consult with it on the choice of CEO for the new bank, something it is required to do.
KNF said the action it took was in line with Polish and European Union legislation however the fund disputes that it did anything wrong.
Abris partner Pawel Boksa told Reuters, “We’ve pointed out to KNF that the candidature was consulted on and we strongly disagree with KNF’s decision.
“We followed Polish law and applied for the approval of Slawomir Lachowski, and he was eventually approved by KNF as the bank’s CEO.”
“We’re challenging KNF’s decision and demand compensation of at least 2 billion zlotys from the Polish state through arbitration in Stockholm.”
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