Hotel Tycoon Sues Lloyds Bank Over Forced Property Sales

Donald Macdonald, a prominent Scottish hotelier, is suing Bank of Scotland, now part of Lloyds Banking Group, claiming he was coerced into selling parts of his hotel portfolio at significantly reduced prices to settle debts. His financial troubles peaked in 2005, with borrowings reaching £620 million. The lawsuit, initiated in October 2017, alleges losses between £101.9 million and £118.5 million due to the bank's pressure. The case is set for trial, with notable figures like Peter Cummings and William Rucker mentioned in relation to the negotiations surrounding the sale of a site called Botley Park. Cummings, previously banned for his role in HBOS's aggressive lending practices, is not accused of wrongdoing in this case. Lloyds has stated that they believe the claims lack merit and that the decision on which assets to sell was ultimately Macdonald's responsibility. The outcome of this trial could have significant implications for Macdonald Hotels and the banking practices of Lloyds following the financial crisis.