Personal guarantees, SME debt and “vulture” funds – a recent decision gives grounds for borrowers to
As so-called “vulture” funds put the squeeze on SME borrowers to dispose of assets to liquidate their portfolios, we need to be reminded that the funds are set up to operate exclusively for the benefit of their shareholders and not borrowers, and often expect to recover more than the borrower or its guarantors are legally obliged to give. To all intents and purposes, portfolios bought by foreign funds arising from bank deleveraging comprise loans that share certain characteri
