HSBC was embroiled in growing controversy last night over the fees that it charged for its involvement in a controversial restructuring plan at Hirco Developments. HSBC is responsible for due diligence, and wrote some position papers. How much did that cost? HSBC is taking a share of a total of £4 million in fees for the proposed restructuring at Hirco, which is chaired by Niranjan Hiranandani, a member of the family that has made a fortune out of the development boom in India.
While opponents claim a lack of transparency in the matter, HSBC is Hirco’s nominated adviser and said last night that it stood by its role on the restructuring. It emphasised the due diligence that had gone into the proposals. The bank has published a fairness opinion on the deal and said that it stuck by its view.
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