Property finance: borrower fights 'tooth and nail' against refusal to allow full drawdown

By Brian Cain

This case is a good example of a borrower throwing everything but the kitchen sink at a lender only to find itself bound by the terms of the facility agreement because of some of the boilerplate provisions.

In 2007, Deutsche Bank (Suisse) entered into a £50m facility agreement with several members of the Khan family and several property-owning companies controlled by them. The properties stood as security for the loan, which was also guaranteed personally by one of the Khan family.

In the discussions between the bank and the borrowers prior to the signing of the facility agreement, it became clear from the valuations of the properties that a considerable element of the value attributed to them comprised ‘hope value’. The facility agreement was signed before full consideration had been given to the matter by the lender’s credit management department. Upon considering the valuation further, the lender decided it could not get comfortable with a drawdown by the borrowers of the full amount of the facility. A side agreement permitting partial drawdown was entered into…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • merger deal

    Corporate crunch time: who will triumph at The Lawyer Awards 2014?

    As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014. 

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

View more analysis from The Lawyer

Overview

5 New Street Square
London
EC4A 3TW
UK
http://www.taylorwessing.com

Turnover (£m): 241.20
No. of lawyers: 860 (UK 200)
Jurisdiction: UK
No. of offices: 4
No. of qualified lawyers: 67 (International 50)

Jobs