Piedmont, a region in Italy, was ordered to pay around Eur36 million equivalent to US$47 million to Dexia Crediop SpA and Intesa Sanpaolo SpA. The region was imposed to pay following its defeat in a London lawsuit regarding an interest-rate swap agreement.

Judge Henry Eder stated that Piedmont failed to respond in time to stand up for the Italian bank's application for spending. The Judge added that Piedmont described the region's accusations of mis-selling as "vague and obscure." Piedmont was not able to pay its dues since January 2012.

"If Piedmont wished to challenge those figures, they have had ample -- indeed more than ample -- time to do so," Eder stated in a written decision reported today.

Dexia Cresiop's spokesperson in Rome refused to give a statement. On the other hand, Intesa's representative did not have a direct comment regarding the matter. Andrew Wass, Piedmont's UK lawyer, declined to give a comment.

Piedmont told the London court that its finance director did not understand the contract due to the inability to speak English well. The director still signed the swaps including Eur1.8 billion bond issue in 2006. Piedmont sought the trial with an argument that the contract was not legal under Italian law.