Abhishek Sachdev, MD of Vedanta Hedging, was interviewed by EuroTreasurer regarding the recent settlement of Graisley Properties vs Barclays, regarding LIBOR manipulation.
EuroTreasurer is a specialist magazine aimed at Corporate Treasurers across Europe.
Vedanta Hedging are acting as legal Expert Witnesses in a number of derivative High-Court legal disputes.
A closely watched case brought by Graiseley Properties against Barclays was settled out of court. Coined a “Libor test case”, the lawsuit was seen as a litmus test for whether customers will take their banks to court over allegedly fixing the Libor. Graiseley Properties, the owner of Guardian Care Homes group, claimed that it was mis-sold £70 million in interest rate swaps by Barclays to refinance two credits in 2007. Linked to the Libor, these swaps have reportedly cost the group £12 million since 2008. The settlement says that Graiseley will withdraw the litigation in return for Barclays restructuring its debt. Further details were not disclosed. The settlement means that several top managers, including former CEO Bob Diamond, will not have to testify at trial. Still, similar cases could follow. “There are a lot more cases queued up with Libor interest rate derivatives,” says Abhishek Sachdev, managing director of Vedanta Hedging, an expert witness in legal derivative cases. He believes that the out-of-court settlement should encourage more lawsuits. “Barclays was just the first bank to have been publicly culpable. More are to follow,” he says. However, victims must act quickly. According to Sachdev, legal claims can only be made within six years of entering into the contract. Since many date to 2009, some companies may soon run out of time. akm
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