It was reported in The Sunday Times on 21st August 2016 that more than 100 small businesses are to launch a £1 billion claim against Royal Bank of Scotland over allegations that they were mistreated. They claim they were pushed into administration by RBS’s global restructuring group (GRG). At its peak in 2010, GRG is estimated to have handled thousands of businesses.The 140 small companies have also accused the Financial Conduct Authority (FCA) of sitting on a report it commissioned on GRG. The regulator received this several months ago and shared its main points with RBS, but has not set a date for publication. Last month its chief, Andrew Bailey, said the report was “not finished”.
Almost 70% of companies involved in the case claim that RBS put unrealistically low valuations on their businesses and assets once they were placed in GRG and more than 90% said RBS imposed a range of excessive charges that jeopardised the stability of their business.
Gordon Deane at Balfour+Manson has been advising a number of the firm’s clients regarding bank-related claims, including those involving the GRG. If you would like to discuss any such matter further with Gordon please contact him on 0131 200 1485 or at gordon.deane@balfour-manson.co.uk