UK buyout firm Terra Firma has reached a settlement with French bank Natixis in its law suit, relating to the securitisation of electrical goods rental business Box Clever. It had accused the Guy Hands' buyout firm of fraud, according to a statement.
Guy Hands: Box
Natixis withdrew its claim against Terra Firma and all allegations of deceit against Terra Firma’s Quentin Stewart, a financial managing director of Terra Firma, and Paul Spinks, a transaction executive, formerly employed by Terra Firma.
The settlement brings an end to the legal case, which Natixis brought to court in February. The French bank filed cases against the three companies that worked on the £748 million ($1.46 billion; €1 billion) refinancing of Boxclever in 2002: West LB, Terra Firma and Canadian bank CIBC. Boxclever defaulted on its loan payments in 2003.
Details of the latest settlement were not disclosed.
Natixis had alleged Terra Firma knowingly provided faulty models projecting Boxclever’s growth but did not inform it of the problems.
In January German bank West LB and CIBC settled charges they were facing from Natixis relating to the failed securitisation without payment, leaving Terra Firma to defend the case in court on its own.
Shortly afterwards West LB settled its related legal battle, with Terra Firma, where it also alleged Terra Firma provided faulty models.