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Court of Appeal clarifies which guarantee obligations create a debt liability for enforcement purposes
Practical Law UK Legal Update Case Report 1-513-1854 (Approx. 6 pages)
Court of Appeal clarifies which guarantee obligations create a debt liability for enforcement purposes
by PLC Restructuring and Insolvency and PLC Finance
In McGuinness v Norwich and Peterborough Building Society [2011] EWCA Civ 1286 (9 November 2011), the Court of Appeal held that a creditor with a debt claim against a guarantor in a pre-agreed amount could use this as the basis of a bankruptcy petition.
The court upheld the High Court decision that a conditional guarantee and a primary concurrent obligation in a guarantee document created a liquidated debt between the guarantor and the guaranteed creditor, pursuable by statutory demand and bankruptcy petition.
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Resource ID 1-513-1854© 2024 Thomson Reuters. All rights reserved.
Published on 15-Dec-2011
Resource Type Legal update: case report
Jurisdictions
Related Content- England
- Wales