Personal finance columnist David Chaplin on the court case between 12 global investors and the Portuguese 'Novo Banco'.

The New Zealand Superannuation Fund has filed legal proceedings in Portugal against that country's central bank as it tries to claw back a loan to a failed Portuguese lender that resulted in a $200 million write-off.

The NZ Super Fund has lined up alongside vulture funds and an Indian steel billionaire in a bid to extract itself from a bad $200 million bet on a toxic Portuguese bank.

The Guardians of New Zealand Superannuation has suspended the Fund’s mandate with Milford Asset Management until an FMA investigation is completed.

The Portuguese bank that failed and lost the NZ Super Fund almost $200m breached Central Bank orders by "increasing exposure to its founding family's collapsing business".