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Indian firm tries to bring Libor into dispute with Deutsche Bank

Indian firm tries to bring Libor into dispute with Deutsche Bank

LONDON, March 1 (Reuters) – Indian real estate developer Unitech wants to add allegations linked to the manipulation of Libor to an existing dispute with Deutsche Bank, in a move that could set a precedent for cases against other banks.

Unitech is involved in a legal dispute with Deutsche Bank over a $150 million loan and related interest rate swap agreed in 2007 and which Deutsche Bank alleges it did not pay back.

It has tried to amend its counter-claims against Deutsche’s allegation in light of revelations about Libor rigging since the suit was launched in March 2012, legal documents show.

Unitech has sought to argue that the loan and swap agreements were invalid because they were tied to Libor when it was being manipulated, although so far the court has not allowed it to add that argument to its counter-claim.

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