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chatham-chamber
chatham-chamber, Advocate
Category: Law
Satisfied Customers: 11825
Experience:  LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
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Can anyone help me with advice on whether i have grounds to

Resolved Question:

Can anyone help me with advice on whether i have grounds to litigate against a small early stage UK company. I am already an equity investor but lent them money last last year and insisted on a clause in the loan which allowed me at my sole discretion to switch to any new loans they took (i.e. convert to better terms). I exercised that option in December when a fund made a loan at more attractive (for me) terms. The new loan by that fund had the same option to switch to better terms if the company took more attractive funding (for the lenders).
The company asked me the to sign a new loan document two months later, stating that it was only for technical reasons to do with the security of the debenture. I signed that new loan.
They have now taken out a new loan which is much more attractive than my loan. I asked to convert and they told me that the option to convert in their view was once only and anyway wasn't in my new Series B loan agreement.
I believe the company represented or warranted to me that there were no material changes when they asked me sign the new loan agreement and/or omitted to point out that they were dropping the key option to convert clause which I had always made clear was important to me.
I am trying to get a good sense of whether I have a good case?
Submitted: 1 year ago.
Category: Law
Expert:  chatham-chamber replied 1 year ago.

Hi,

Can you provide copies of the documents you signed?

chatham-chamber and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Which documents?

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