Overseas Guarantor PG


R was a French citizen, based in France who personally owned a property in London, and had given a joint personal guarantee along with a co-director of some £250k with respect to lending from a British bank to a British company that subsequently failed.

He had already admitted liability, by way of a consent agreement to repay the £250k over time, and had already repaid £75k but wanted a full and final settlement negotiated with the bank.

During the process of the negotiations R’s business in France went into administration and there was considerable personal relationship stress as a result of the financial pressure.


The bank agreed a settlement of £25k. We believe this is party because of the cost involved in pursuing an overseas based person who, although had an property in London, the bank may have felt the situation may prove difficult to recover monies in the event of any possible overseas insolvency and claim of interest issues.

However, we also feel that the timing of the negotiations were right in that the bank involved were probably looking to clear the decks of their old debt, which would have been written off in their books in any event and mean they could reduce the cost of collections on debt that for the most part would not recover significant sums to the bank.

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