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JGM, Solicitor
Category: Law
Satisfied Customers: 12173
Experience:  30 years as a practising solicitor.
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Back in 2007 when I was , (only 60 at the time) and a little

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Back in 2007 when I was rich, young (only 60 at the time) and a little imprudent, I lent a good friend of mine, who was at the time the third largest fine wine internet dealer in the UK, the not inconsiderable sum of GBP 500,000 - we have a written and jointly signed agreement covering the loan and the rate of interest that is to be paid on the loan - 12%.
However the imprudent part is that the loan was not secured and obviously I should have taken steps at the time to ensure that it was.
Nevertheless until 2014 I was doing very well out of this investment, but in that year the bottom fell out of the fine wine market,and that coupled with business misjudgments, resulted in the company failing (that was last month) and the enterprise being established under a different name.
My friend will survive no doubt but to a certain extent that is at my expense. My friend defaulted on the loan interest payments in late 2014 - he indicates that repayment of the interest arrears is his 'number one' priority which is probably true, but I cannot wait the two or three years that this will require even with total focus on his part - interest arrears will total GBP135,000 by year end 2016 - and of course will continue to grow out into the future. In addition I am concerned for my GBP 500,000 principal.
This is what I have considered as potential remedies:
1. Sue for the outstanding interest - would rather try (2) below first.
2. Secure wine stock in lieu of the outstanding interest. Although business is rough at the moment he has plenty of desirable stock.
3. I think it would be prudent to secure the GBP 500,000 against wine stock if it is possible so to do.
I would much appreciate your advice on what I have suggested and if any legal remedies are in the offing I would most happy to cough up the dough.
***** *****

Is the agreement you have in the name of your friend or a limited company? And is the current wine stock owned by your friend or a limited company? What value of stock is carried as a general rule. I may have some more questions depending on your answers.

JGM, Solicitor
Category: Law
Satisfied Customers: 12173
Experience: 30 years as a practising solicitor.
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