Morgan Stanley is in talks over an eleventh-hour settlement to end legal proceedings brought by a group of nuns and other Irish investors over losses they claim they incurred on structured investments.

The case, which was first filed in the UK courts in August 2010, had been due to go to trial yesterday morning. However, once proceedings got underway after two delays, Andrew Sutcliffe QC, a barrister at 3 Verulam Buildings acting on behalf of the claimants, told the judge at the Commercial Court in London, Mr Justice Walker, that the claimants had "provisionally agreed" to settle with Morgan Stanley, and asked for further time to resolve the terms of a settlement.