Settling a dispute between the borrower and connected parties on behalf of a commercial lender client

Mark Steggles and Guy Evans assisted a commercial lender client in settling a dispute arising between the shareholders of a borrower and connected parties. The dispute resulted in an arbitration and High Court proceedings.

The outcome of the High Court proceedings was effectively to require that the property be transferred to a third party subject to the client’s charge. The borrower refused to do so but was not able to otherwise deal with the property. This effectively left the client in limbo. Their facility was not repaid and the borrower was unable to dispose of the property to realise funds to pay the client. Mark and Guy advised the client on the status of the High Court order as concerned their interest and options for enforcement of their security to resolve the impasse.

After assessing a number of options and engaging with the other party to the Court proceedings Mark and Guy served demands and appointed administrators via the out of court route over the borrower in order that the client could effectively secure the borrower’s compliance with the High Court Order. That in turn meant the other party to the Court proceedings could obtain finance and would be able to buy out the client’s interest in exchange for the property being transferred to them.

Mark and Guy also advised the administrators as to their responsibilities given the High Court order, engaging heavily with them pre appointment to ensure that they could act in the client’s interests.