The latest court ruling for Citi to pay damages to Mercuria does not mark the end of a legal dispute that centres on trade finance fraud at the Port of Qingdao.
A crucial court decision and improved practices around commodity assets and collateral is helping restore confidence following fraud at the Port of Qingdao
Citi failed to force Mercuria Energy to stump up $270 million, but the crucial UK High Court ruling over metals financing will provide comfort for trade finance banks in China and users of repo agreements alike.
The ruling on a critical dispute between metals trading firm Mercuria and Citi has been posted on the UK High Court's commercial list. The long-awaited decision will be publicly available today at 2:00pm BST.
The Qingdao Port investigation will drag into mid-way next year, according to a China trade services expert, treasurers can expect pre-shipment finance to be “virtually impossible”.
Despite company registrar filings that HSBC has released assets related to traders involved in Qingdao Port disputes, delays continue in trade finance.
Jul 29, 2014
Sign up for CorporateTreasurer’s Newsletter
Top news, insights and analysis every Tuesday & Thursday
Free registration gives you access to our email newsletters