MSP Capital Ltd v Hillborough Hall Farms Ltd [2023] MHLO 5 (CC)
Report of decision
Extract from "Legal Mortgage Monthly Update" June 2023:
Legal points
Breathing space moratorium – guarantee to secure company indebtedness - qualifying debts and non-eligible debts – stay of enforcement
Summary
The court declined to stay eviction on the basis that an application for a breathing space moratorium had been made in respect of the guarantee liabilities of a company
Facts
Following default in repayment of a loan of £2,243,500 MSP sued for possession and a money judgment against the borrower (a company) and two guarantors of the company (individuals).
The District Judge made an order for possession and stayed the money claim with liberty to apply.
The day before enforcement, the court was advised that the guarantors had applied to a debt adviser for a breathing space pursuant to the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020, and on the basis that the grant of a breathing space should give a stay of eviction.
Held
Although ‘qualifying debts’ in the Regulations included ortgage arrears, they did not include the secured debts themselves. These were non-eligible debts pursuant to Regulation 5(4).
Since the money claim had been stayed, the court had not determined any secured loan arrears.
There could be no moratorium in respect of the guarantees given to secure the business debts of a company. These did not fall within the Regulations.
There was no basis for the warrant to be stayed.
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External links
Full judgment: No Bailii link (neutral citation is unknown or not applicable)
Subject(s):
- Miscellaneous cases🔍
Date: 24/1/23🔍
Court: County court🔍
Judge(s):
- Walden-Smith🔍
Citation number(s):
What links here:
- Cases per year
- Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020
Published: 16/3/25 16:42
Cached: 2025-04-18 05:34:59