Withers wins £3m refinancing dispute for wealth management client

The commercial litigation team at Withers has successfully obtained judgment for the repayment of loans provided on the basis of personal guarantees, on behalf of our client, Decisive Capital Management SA, bringing three and a half years of litigation to a conclusion.

In 2020, our client entered into negotiations with a London-based individual to refinance an existing debt secured against a £50 million property in London. During the course of the ongoing negotiations, our client also extended bridging loans to two corporate entities owned by the individual to manage the underlying debt, all secured by personal guarantees.

Following the conclusion of our client's involvement in the refinancing project, the individual and companies refused repayment on the basis of alleged promises made by our client that they would refinance the whole debt, which was in excess of £70 million. 

We successfully obtained judgment against the companies during the disclosure stage of the proceedings. Broadly, the defence raised allegations of misrepresentation and issues of contractual interpretation. After a six-day trial in the High Court , the individual's obligations were found to be valid and we recovered over £3 million for our client. 

Withers partner Eleni Polycarpou comments: "Reaching a satisfying victory for our client after three and a half years of litigation is a testament to our robust litigation practice in London. This was a challenging case which raised interesting legal points relating to the test for misrepresentation, which was an issue we were able to successfully address."

Litigation partner Eleni Polycarpou led the Withers team representing Decisive, working with associate Ryan Borley and instructing Mr Giles Wheeler KC of Fountain Court Chambers.