Dec. 7 (Bloomberg) -- Royal Bank of Scotland Group Plc, the lender majority-owned by the U.K., was awarded around 19 million pounds ($30 million) in a dispute with affiliates of Highland Capital Management LP over a failed bond transaction.
Justice Michael Burton at the High Court in London decided the case today, ruling solely on the amount. Burton in June ruled in favor of the bank’s interpretation of its agreement with Dallas-based Highland over a collateralized debt obligation which failed to close “because of the collapse of the financial markets in the latter part of 2008,” according to the ruling.
At a hearing in September, RBS said Highland should cover a shortfall of about 40 million euros ($53 million), which it says is the difference between the value of the portfolio of loans acquired for the CDO and the outstanding amount of the financing RBS provided to buy them.
A call to a Highland spokesman in New York before normal business hours wasn’t immediately returned.
The case is: The Royal Bank of Scotland v. Highland Financial Partners L.P & 2 Ors., 2009-605
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