Principal director of property-development company

Service(s): Personal Insolvency & Advisory Services
Sector: Property

A German national from a wealthy family background had a London based property-development company of which he was the principal director. The company was facing insolvency proceedings following plummeting property values and the withdrawal of bank facilities. 

Charles Turner was appointed by the director to advise on his personal financial circumstances and to devise the best course of action to protect his reputation and to deal with his personal guarantee liability to the bank. 

Having reviewed the financial status of the company and the director, Charles approached the Icelandic bank which was,itself, subject to administration proceedings, negotiating a deal with them on the multi-million pound personal guarantee liability. This required a careful review of the guarantee documentation and consideration of the treatment of German and Swiss assets including company shareholdings which were the subject of certain claw-back provisions under German law. It also required consultations with the German legal advisers to the director’s family to see what, if any, funding the family was prepared to make available. 

The settlement ensured that the individual avoided personal bankruptcy and both the bank and the family avoided expensive, as well as damaging cross-border litigation which, in the event of insolvency proceedings, would have been necessary to resolve title to certain of the assets. 

The compromise resulted in a substantial return to the bank and allowed the individual to pursue his career interests both in the UK and elsewhere, untainted by personal bankruptcy.

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