Shinsei Bank said Monday it has agreed to pay 21.8 billion yen in damages to a failed resort developer to settle a legal dispute over sales of the developer's properties by the bank's predecessor.
In March, EIE International Corp. sued Shinsei Bank, formerly Long-Term Credit Bank of Japan, at a court in Saipan, seeking compensation for what it called "fraudulent" sales of its overseas properties in the 1990s.
LTCB, nationalized in 1998, was the main creditor bank for EIE International.
Shinsei Bank said the accord does not mean the bank has admitted responsibility.
The bank said it decided to pay because it does not want the case to drag on and eventually increase its personnel and other costs.
After making the payment to EIE International, Shinsei Bank will request reimbursement of 17.4 billion yen from Deposit Insurance Corp. under a contract it signed with the government-backed entity in 2000, the bank said.