Glovers’ client obtains an order for Court appointed receivers over 62 properties by way of equitable execution of a judgment and a continuing Worldwide Freezing Order

Glovers acted for UCB Home Loans Corporation Limited (“UCB”) in securing a continuing Worldwide Freezing Injunction against two of UCB’s borrowers.  UCB also obtained an order for the appointment of Court appointed receivers over 62 properties, by way of equitable execution of the £4 million judgment that UCB obtained against the borrowers in December 2010.

Hearing the application, Mr Justice Arnold accepted that the alleged dishonesty of the Respondent borrowers was sufficient to give rise to a real risk of dissipation of assets, which justified the continuation of the Worldwide Freezing Injunction.  He also held that in a situation where the only asset was rental income from a portfolio of properties, even though these properties were charged to other lenders (and there was no surplus equity to render charging orders worthwhile, nor would charging orders prevent the borrowers from receiving the rental income from the properties), the appointment of receivers to collect rents was the only realistic prospect of enforcing the judgment.  In these circumstances, Mr Justice Arnold held that it was just and convenient to make an order for Court appointed receivers over the borrowers’ property portfolio.  Third Party Debt Orders were found to be impractical where a large number of properties were involved and monthly orders would be required.

UCB succeeded on all aspects of its application, which also included an order for oral examination of the borrowers.

Mr Timothy Polli appeared as Counsel for UCB.

The case has been reported on Lawtel. Click the link below.

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For further information, please contact Catherine Connolley.