LONDON, April 7 (Reuters) - Barclays said it hadreached a settlement with a UK care home operator that accusedit of mis-selling products linked to benchmark interest ratesjust weeks before the start of a potentially embarrassing courtcase for the bank.
The case had been seen as a test case for the manipulationof Libor interest rates and senior Barclays employees and formerexecutives, including former chief executive Bob Diamond, hadbeen due to testify at the trial.
Guardian Care Homes, whose parent company is calledGraiseley, claimed the alleged manipulation of Libor by Barclaysmeant interest rate hedging products it was sold were invalidand sued for 70 million pounds. Barclays said Guardian owed itthe same amount.
"The parties have negotiated and agreed to a commercialrestructuring of Graiseley's debt, which reflects the impact ofchanges in conditions in this sector over the last few years.Graiseley has withdrawn the litigation," a spokesman forBarclays said. (Reporting by Steve Slater; Editing by Matt Scuffham)