LONDON (Reuters) - Barclays (BARC.L) said it had reached a settlement with a UK care home operator that accused it of mis-selling products linked to benchmark interest rates just weeks before the start of a potentially embarrassing court case for the bank.
The case had been seen as a test case for the manipulation of Libor interest rates and senior Barclays employees and former executives, including former chief executive Bob Diamond, had been due to testify at the trial.
Guardian Care Homes, whose parent company is called Graiseley, claimed the alleged manipulation of Libor by Barclays meant interest rate hedging products it was sold were invalid and sued for 70 million pounds. Barclays said Guardian owed it the same amount.
“The parties have negotiated and agreed to a commercial restructuring of Graiseley’s debt, which reflects the impact of changes in conditions in this sector over the last few years. Graiseley has withdrawn the litigation,” a spokesman for Barclays said.
Reporting by Steve Slater; Editing by Matt Scuffham