Terra Firma, the private equity firm, and a fund managed by Deutsche Bank have relented on their attempt to block UBS from selling debt held in one of their investments, in a legal outcome that will be closely watched.

UBS, the Swiss bank, was suing Germany’s Tank & Rast service station group – jointly owned by Terra Firma and RREEF, a Deutsche Bank fund – in the High Court for allegedly improperly blocking UBS from selling the company’s loans to new investors.