Close Brothers Limited v AIS (Marine) 2 Limited (in liquidation) and Anor [2018]

Close Brothers Limited v AIS (Marine) 2 Limited (in liquidation) and Anor [2018] EWHC B14 (Admlty) — 17 September 2018 (Admiralty Registrar Jervis Kay QC)

“Following default in owners' repayments, a ship was repossessed and sold by the claimant mortgagee bank who then sought a shortfall from the guarantor. The Court ruled that a defence of "sale at undervalue" although technically available to the guarantor, was unsustainable on the facts. Despite the sale price being just over the book debt it was nonetheless reasonable. Nor did sale to a client of the appointed S&P brokers involve a "connected person" such as to reverse the burden of proof.”

Louise Glover
E. G. Arghyrakis & Co.
26th September 2018