Deutsche Bank is suing Orb arl and Orb Estates plc for more than £400,000 in a dispute over invoices for the takeover of Thistle Hotels plc.
The bank allegedly held discussions with investment company Orb Estates and its Jersey-based parent company, Orb, in September 2002, concerning the financing of Orb’s plans to acquire 29.9% of the shares in BIL International Ltd and all the shares in Thistle Hotels. It claims that Orb agreed to reimburse the bank for all expenses arising from the project.
Following the parties’ agreement, Deutsche Bank claims that it continued to work on the scheme, instructing legal, accountancy and business-risk professionals, and drafting documents.
It allegedly issued four invoices to Orb: £300,000 on 10 October, £370,000 on 30 October 2002, £200,000 on 13 November, and £203,697 on 17 December. A subsidiary of Orb, Mitre Property Management, paid the first two invoices, but the claimant contends that the final two remain unpaid.
Orb argues that the September expenses agreement was varied at later meetings in November, and that the payment of the first two invoices represented full and final settlement of its liabilities.
The bank disagrees, stating that there have been no discussions varying the terms of the agreement. It is seeking payment of £403,697, plus interest.
References: PLS News 13/5/03
