BNY Mellon Sues Santander Over Debt Interest Rate

Law360, New York (December 20, 2010, 4:00 PM EST) -- Bank of New York Mellon Trust Co. NA has launched a suit against Santander Holdings USA Inc., alleging the Spanish bank's 2009 takeover of Sovereign Bancorp Inc. triggered change-of-control provisions that should have raised the interest rate on debt held by the plaintiff.

Santander's refusal to acknowledge the increased interest rate on Sovereign debt has cost BNY Mellon more than $40 million in unpaid interest and threatens its estimated $310 million investment in the debt, according to a complaint filed Friday in the U.S. District Court...
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