Business person sues RBS for $184 million over declared conspiracy

© Reuters. A logo design of the Royal Bank of Scotland (RBS) is reflected in the window of a branch office in London

By Lawrence White and Andrew MacAskill LONDON (Reuters) – The previous CEO of a software company is suing RBS (L:-RRB- for supposedly conspiring to press the business into administration to gain from its sale, court filings show, in the current case to declare misbehavior by the bank’s restructuring division. Scottish business owner Neil Mitchell is seeking 128 million pounds ($184 million) in damages on insurance claims that Royal Bank of Scotland (RBS) conspired in 2007 with co-defendants KPMG and U.S.-based fund Cerberus Capital Management () to sell assets of his business, Torex Retail plc, for below their value. Mitchell declares RBS pushed Torex Retail into administration – a type of security from lenders under which external supervisors from KPMG were introduced – in order to compel its sale to Cerberus therefore rid its books of a bad loan it was owed by Torex, documents filed at Britain’s High Court of Justice reveal. Mitchell likewise declares in the court filing that RBS and Cerberus conspired covertly to ensure Torex would be sold for listed below its value to Cerberus. The allegations include conspiracy by unlawful methods, breach of trust and negligence. “We have actually completely investigated Mr Mitchell’s claims and think them to be completely without merit. Mr Mitchell has chosen to release legal procedures which will be fulfilled by a complete defense,” a spokesperson for RBS said.A spokeswoman for KPMG rejected it acted incorrectly, stated Mitchell’s insurance claims had no substance and that KPMG had actually used to have the case set out. Cerberus decreased to comment. The claims when again focus attention on RBS’s International Restructuring Group (GRG), a division being investigated by Britain’s monetary regulator following claims by hundreds of small businesses which state GRG maltreated them or forced them out of company. RBS, 73 percent-owned by the UK federal government, asked law office Clifford Possibility to undertake an independent evaluation of GRG, which found no proof for the allegations. Britain’s Financial Conduct Authority has actually worked with firms Promontory Financial Group and Mazars to perform its own investigation and produce a report, initially arranged for the end of last year and now expected to be published in mid-2016. The governing query comes as RBS Chief Executive Ross McEwan is attempting to rebrand the bank as the greatest advocate of smaller companies in the UK. The court documents name previous RBS Chairman Philip Hampton and former President Stephen Hester as amongst those who represented RBS in its dealings with Torex Retail. Hester and Hampton decreased to comment.Torex Retail, which offered software application for touch screen shopping tills, entered into administration in June 2007 after Mitchell and other executives at the company blew the whistle on scams they had found within the company. Disclaimer: Fusion Media want to remind you that the information included in this site is not always real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not supplied by exchanges but rather by market makers, and so costs might not be precise and might vary from the real market price, suggesting costs are indicative and not appropriate for trading purposes. Therefore Blend Media does n`t bear any duty for any trading losses you may sustain as an outcome of utilizing this information. Fusion Media or anyone included with Combination Media will not accept any liability for loss or damage as an outcome of reliance on the information consisting of data, quotes, charts and buy/sell signals included within this website. Please be totally informed concerning the dangers and expenses associated with trading the financial markets, it is one of the riskiest investment types possible.

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