German bank WestLB and Canadian bank CIBC have settled with French bank Natixis in the Boxclever courtcase, relating to the troubled Terra Firma buyout, according to West LB’s spokesman.
The courtcase was adjourned until tomorrow and will reopen with Terra Firma facing charges of fraud tomorrow.
French bank Natixis had 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.
After striking a deal with Natixis, the German bank will also continue its separate suit against Terra Firma. Like Natixis, West LB alleges Terra Firma knowingly provided faulty models projecting Boxclever’s growth but did not inform it of the problems.
Terra Firma’s spokesman said it denies all allegations.