ORJ is advising an owner-manager of a substantial UK manufacturing business about a guarantee he gave to a Lender. A Lender statutory demand for £4.2m has been withdrawn following ORJ intervention in the matter.
The reputation of lenders is not what it once was. In this case the owner-manager argues that the Lender conspired with others, who would be acquirers of the businesses assets, to act against his interests as a guarantor, with a view to the Lender realising a more advantageous outcome, in a manner which voided the guarantee.
ORJ Partner Patrick Tedstone said “The law of guarantees has been around for 100 years but was based largely on the assumption that most lenders were beyond reproach. The world has changed, and in many cases lenders have behaved very badly. We seek to argue that the courts to take account of this when considering Lenders rights as against those that guarantee their repayment.”