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I used to own a haulage company and gave State Securities a personal guarantee when I refinanced some of the vehicles with them in April 2010. The agreement was between the haulage company and State, but I gave an unlimited guarantee should the business fail to pay.
Unfortunately, last month I had to sell the business in order to travel abroad to sort out a family problem. I needed a quick sale and didnt have time to rearrange the personal guarantee at the time. The Buyer promised to transfer the guarantee on my return and signed a contract to that affect.
I now have a problem, as the Buyer is dragging his feet in changing the guarantee, as are State Securities. The matter is made worse as I am no longer a director or share holder in the company. ie. I have an unlimited guarantee in a business in which I have no say.
I realsie it was foolish of me not to transfer the guarantee first, but the situation called for immediate action and I couldnt afford to wait.
The Settlement Figure is ~£80,000. The business has never missed a payment, nor has it ever paid late, and as I understand it is trading in a similar manner to how I left it. (ie. reasonable given the economic climate)
I would be grateful if anybody could perhaps advise on the best way forward, in particular:
1. If State Securities and the new Buyer can not agree transfer terms will I be liable for the £80k immediately? (Or are they obliged to sell the vehicles first and then cliam the difference from me?)
2. Can State Securities demand payment from me even if the business continues to make the monthly payments?
3. Am I still bound by the guarantee even though I am no longer a director or share holder?
4. As I have notified State securities of the change in circumstances, do they not have a responsibility to mitigate any potential losses by transfering the guarantee to the new buyer? (ie. Are they allow to stall and hold up the process, or deny the transfer?)
Thanks. I'm stressing out here....
Unfortunately, last month I had to sell the business in order to travel abroad to sort out a family problem. I needed a quick sale and didnt have time to rearrange the personal guarantee at the time. The Buyer promised to transfer the guarantee on my return and signed a contract to that affect.
I now have a problem, as the Buyer is dragging his feet in changing the guarantee, as are State Securities. The matter is made worse as I am no longer a director or share holder in the company. ie. I have an unlimited guarantee in a business in which I have no say.
I realsie it was foolish of me not to transfer the guarantee first, but the situation called for immediate action and I couldnt afford to wait.
The Settlement Figure is ~£80,000. The business has never missed a payment, nor has it ever paid late, and as I understand it is trading in a similar manner to how I left it. (ie. reasonable given the economic climate)
I would be grateful if anybody could perhaps advise on the best way forward, in particular:
1. If State Securities and the new Buyer can not agree transfer terms will I be liable for the £80k immediately? (Or are they obliged to sell the vehicles first and then cliam the difference from me?)
2. Can State Securities demand payment from me even if the business continues to make the monthly payments?
3. Am I still bound by the guarantee even though I am no longer a director or share holder?
4. As I have notified State securities of the change in circumstances, do they not have a responsibility to mitigate any potential losses by transfering the guarantee to the new buyer? (ie. Are they allow to stall and hold up the process, or deny the transfer?)
Thanks. I'm stressing out here....
