Leasing Company pursuing on Personal Guarantee and refusing reasonable offer for purchase of assets
C’s Company was a very specialist provider that utilised specialist equipment. The industry was struggling in general and C as one of the two guarantors had provided a termination notice on a personal guarantee for £150k with respect to a leasing agreement on some very specialist equipment.
The Company stopped trading within 9 months and the Directors had offered a more than fair market value for the equipment which otherwise might have been sold at best for scrap at auction and would settle all the leasing company’s obligations under the lease agreement in it’s entirety.
Notwithstanding this offer the leasing Company arranged for the specialist equipment to be recovered from the Company and placed into storage at some considerable cost and continued to refuse to entertain the offer made for the equipment whilst issuing demands on both the guarantors.
In negotiating the matter on behalf of C and the co-guarantor we were able to set out the difficulties the leasing company would face in pursuing the personal guarantees should they continue to refuse such an offer and given the termination notice provided by one of the guarantors.
In a matter of a couple of weeks the leasing company agreed to sell the equipment to our clients at the price they offered and waived all costs in relation to storage and recovery whilst releasing our clients in full from the guarantee.