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EDMONTON
Alberta's Liberal Opposition is demanding to know why the province's taxpayer-backed bank waived its right to recover more than $100 million from a bankruptcy proceeding involving the world's largest mall.
Court documents show the Alberta Treasury Branches, now called ATB Financial, dropped its bid to recover the secured loan following a tentative settlement reached between West Edmonton Mall and a number of other creditors.
The bank is currently suing the mall for $420 million over allegations that it bribed the bank's acting superintendent to secure a loan guarantee during a 1994 refinancing. The mall has denied the allegations and is countersuing.
Liberal leader Ken Nicol called on Finance Minister Pat Nelson to explain the ATB decision to taxpayers.
"She has got to call them to account why is it they would write off or exempt themselves from a possible claim," he said.
"How can you just waive the possibility of...