RHG Group has settled a long-running dispute with a lender, UniCredit Bank, over alleged default and disputed costs, and will receive a boost to earnings after releasing funds that have been held in escrow pending the outcome of the case.RHG reported to the Australian Stock Exchange that all matters in dispute had been resolved and all current court proceedings have ceased.It is understood that the settlement terms give RHG time to refinance and repay UniCredit without penalty.In December the Supreme Court of New South Wales ruled that RHG was in default on the terms of a $750 million loan. The lender, UniCredit, is the Singapore subsidiary of a European bank HVB.UniCredit had notified RHG of the defaults late in 2008 and had set in motion a process that would have led to the appointment of a receiver to the mortgage security trust and sale of the assets to pay out the loan.The default was alleged to have occurred after arrears rates went above a prescribed level.RHG went to court to seek relief, which was granted in September and then the matter went back to court for a final hearing. RHG was due to start appeal proceedings against the December ruling yesterday.In a related action the Supreme Court ruled last April on a dispute over loan administration costs between the parties. In the loan agreement RHG agreed to indemnify UniCredit for the "currency exchange and basis swap costs" involved in converting the euro loan to Australian dollars.A dispute arose when UniCredit assigned the notes to a special purpose vehicle, Elektra Purchase No 19. RHG argued that its obligation to provide the indemnity ended at that point.RHG also argued that the currency exchange and basis swap charges were excessive. It said the charges had not been calculated in "good faith and in a commercially reasonable manner" as required by the funding agreement.The disputed payments, totalling about $10 million, were put in a secure account pending the outcome of the litigation.In the April judgement the court held that UniCredit could assign its right to indemnification when it passed on the notes to Elektra. In December RHG launched an appeal against that ruling.With the matter resolved, RHG is free of the threat of cross-default claims by its other lenders, understood to be Westpac and RBS.It is also free to take the $10 million out of the secure account. As a result, the company yesterday upgraded its earnings guidance.The company said it expected net profit for the 2010 financial year to be between $65 and $75 million.  Previous guidance, reported in August, was for 2010 earnings of $55 to $65 million.