German bank West LB settled its legal battle, with UK buyout firm Terra Firma, relating to the securitisation of the UK television rental company Boxclever this weekend, according to Terra Firma’s spokesman.
French bank Natixis is pressing ahead with charges of fraud against Terra Firma and the court case resumes next week.
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.
Like Natixis, West LB had alleged Terra Firma knowingly provided faulty models projecting Boxclever’s growth but did not inform it of the problems.
Last week West LB and CIBC settled charges they were facing from Natixis relating to the failed securitisation without payment.
Terra Firma denies all allegations.