Graiseley Properties Ltd (Guardian Care Homes) v Barclays Bank PLC – Part 2

Posted on 12/04/2014 · Posted in Financial Litigation, Interest Rate Swap, Uncategorized

Also see Graiseley Properties Ltd (Guardian Care Homes) v Barclays Bank PLC – Part 1.

Interest Rate Swap and LIBOR Fixing Case

In an agreement reached this week Graiseley properties, who own Guardian Care Homes, has accepted Barclays Bank’s offer of £40m to avoid going to court on April 29, the date on which the trial had been set down.

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Graiseley Properties, which own Guardian Care Homes, had been sold swaps by the bank which were linked to the Libor interest rate. Graiseley accused the bank of mis-selling the interest-rate swap and had originally sued Barclays for £70m. Back in April 2013, the original case judge, Mr Justice Flaux, had allowed Guardian to include claims relating to Libor rate manipulation (for which Barclays, along with other banks, had been fined nearly £60m in 2012 by the FSA )and it was this element of the claim that the bank was given leave to appeal on at the end of this month.

A Barclays spokesman said: ’In response to discussions with Graiseley, in order to support the ongoing viability of Graiseley’s care home business, the parties have agreed to a commercial restructuring of Graiseley’s debt.’ The settlement means that senior executives will not have to appear in court to give evidence.

The settlement, the first of its kind, will make it easier for other firms to make similar claims against banks. The focus will now be on Deutsche Bank and Others v Unitech Global and Another to see how the courts will interpret the LIBOR issues.

Link: Graiseley Properties Ltd & Ors v Barclays Bank Plc [2012] EWHC 3093 (Comm) (29 October 2012)

Link: Graiseley Properties Ltd & Ors v Barclays Bank Plc & Ors (Rev 1) [2013] EWHC 67 (Comm) (24 January 2013)

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