Lancashire launches legal action against banks
LANCASHIRE County Cricket club has launched legal action against its bankers in relation to an interest rate hedging product it was sold by NatWest and Royal Bank of Scotland in 2009.
The club said the purchase of the hedging product was “in connection to and a condition of” a debt finance facility it took with the bank to redevelop its Old Trafford ground, and to open The Point events area in particular.
In its claim, Lancashire alleges that through the sale of the interest rate hedging product the banks failed to discharge a number of duties they owed to the club and that the club suffered “substantial losses” as a result.
A spokesman said: “Despite some challenges during the ground development period, the Club has had a long and fruitful relationship with Nat West Bank which has stretched over 100 years and, naturally, we are disappointed that we have been left with no alternative but to go down this legal route.
“We fully expect all other aspects of the Club’s relationship with the bank to continue as normal whilst this matter is resolved.”
The club is working with law firm Reynolds Porter Chamberlain on the legal action.
NatWest and parent company RBS were not available for comment.
