Bridging loan dispute
Bridging finance dispute
Our litigation team represented a lender where there was a default on a bridging loan.
Axiom Stone works closely with a number of financial lenders including institutional and bridging loan lenders active in corporate and real estate financing. When a borrower has defaulted on their obligations under a bridging loan agreement the Dispute Resolution team acted to secure a swift resolution.
Axiom Stone was instructed by a leading bridging finance institution to secure and recover its loan monies following the default by the borrower which comprised a group of connected companies with a total indebtedness in excess of £7 million. We arranged the appointment Receivers to take control of the various properties with a view to selling them in an upcoming auction.
However, shortly after the appointment of Receivers, our Dispute Resolution department were informed, late one evening, that the debtor companies and their single controlling mind had applied to the Court without notice to any other party and had obtained an injunction preventing the sale of the properties at auction.
That same night members of the Dispute Resolution team took immediate steps to prepare the relevant documents and arguments to respond to the injunction without delay and brought on board specialist Counsel best placed to assist with the application.
Our client’s objective was to challenge and seek the discharge of injunction in order that the sales at auction be allowed to proceed or otherwise to secure settlement of the entire debt from the debtors.
The injunction application raised various issues concerning the appointment of Receivers, their conduct and whether or not it was possible for the debtor to repay its debts.
It was, therefore, necessary to liaise with several different parties including the client, the Receivers, their legal team, counsel and the Applicants. In addition to corresponding with multiple parties, due to the very nature of injunctive proceedings, it was imperative that we worked fast and efficiently in order to achieve the client’s goals.
Settlement of dispute
We prepared a robust response which we filed with the Court and served on the legal team acting for the debtor. As a result, at the door to the Court we were able to negotiate a favourable settlement for our client resulting in prompt settlement of all funds, interest and costs and thereby resolving the dispute to the full satisfaction of our client.