The Video Transcription:

In this case, the business and company had gone into liquidation. The company had a bank loan of 520,000. The 2 directors had provided personal guarantees with this loan to the bank. The problem was that the business had gone bust, the directors’ source of income had ceased and they had limited private resources.

The solution in this case – the financial surgeon reviewed the last 5 facility letters issued by the bank in respect of this loan. The financial surgeon discovered that facility letters and the personal guarantees were not drawn up correctly. Therefore, the guarantees were null and void and the bank could not pursue legal action in respect of such personal guarantee. The bank obviously don’t ever admit this. In this case, no action was taken in respect of the personal guarantee.

As a matter of standard course, we always review the facility letters. Because you never know what you might find.


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David Murray

David Murray

David is a fully and Highly Qualified Financial Accountant with an unblemished record for almost 30 years.

David has an extensive Academic Record including, inter alia – Gold Medal College of Commerce – First Place Chartered Accountancy (ROI) – Fastest Graduate to Qualify.

David has written many articles on International Trade Finance in Magazines and Sunday Business Newspapers. In addition, has been Late Late TV Show Tested on cases referred by them.

David has extensive Business Experience particularly in Property, Construction, Manufacturing, Equipment, Telecom, Service Companies, SME Sectors in Ireland, UK, Dubai, Poland, etc., Agent in Ireland Bank of Iran, Plc Bank Seminars “Finance for Builders”, etc., etc.

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