Guarantors connected to West Country firm Regent Leisuretime have asked the Court of Appeal to reject a High Court order to pay money to a bank following problems with a loan transaction.
A director guaranteed a bank loan after alleged representations by County NatWest that the minimum value of properties valued by its surveyors meant that the guarantees would never be called in.
However, the High Court rejected a request for the guarantees to be rescinded and for a counterclaim against the bank to be allowed.
The deal concerned freehold properties in Newquay, which were valued at £3.5m with vacant possession and at £4.75m as going concerns with goodwill, fixtures and fittings. County NatWest granted a facility of £2.025m to Regent Leisuretime for the purchase, with a director acting as one of several guarantors.
The High Court judge held that even if the minimum forced-sale information provided by the bank was inaccurate, the guarantors had not relied on that representation when they gave the guarantees and should therefore pay the bank.
The hearing continues.
County NatWest Ltd v Barton and others Court of Appeal (Roch and Morritt LJJ and Lindsay J) 23 June 1999
Dirik Jackson (instructed by Blight Broad & Skinnard, of Saltash) appeared for the appellants; Nicholas Elliott QC and Ian Wilson (instructed by Dibb Lupton Alsop, of Leeds) appeared for the respondent.
PLS News 24/06/99
