Santander is preparing for a ﻿court battle, starting on October 12 in the UK, over allegations it misled Portuguese rail company, Metro do Porto, into signing up to a complex derivative, which resulted in a €89m loan spiralling into a debt of nearly €500m. The case centres around whether Santander, as an intermediary, was aware that its customers were being asked to pay more than they had agreed to. Santander, ﻿in turn, is suing Metro do Porto for failure to pay its debt, and its initial claim in court in 2013 relates to an unpaid bill of €7.7m.
Santander is preparing for a ﻿court battle, starting on October 12 in the UK, over allegations it misled Portuguese rail company, Metro do Porto, into signing up to a complex derivative, which resulted in a €89m loan spiralling into a debt of nearly €500m. The company is arguing that the full implications of the imbalance between potential risk and reward were not fully explained and is looking for the swap to be cancelled. Santander, ﻿in turn, is suing Metro do Porto for failure to pay its debt, and its initial claim in court in 2013 relates to an unpaid bill of €7.7m.