Azzurro Associates, owned by Elliott Management, is engaged in a High Court battle over the enforcement of personal guarantees connected to loans from Funding Circle. The court previously hinted at flaws in the documentation that could invalidate these guarantees. Judge Terence Phillips noted a "real prospect of success" for the guarantors' claims, questioning the legality of Azzurro's assignment of debt. This case, closely observed in the lending industry, may influence the enforceability of guarantees on secondary debt markets and the practices of Funding Circle.
The ongoing High Court case could set a precedent regarding the enforcement of personal guarantees in the alternative lending sector, potentially impacting Azzurro Associates' operations.
David Bloom described the situation as a "shambles" and indicated that flaws in the documentation raise doubts about Azzurro's ability to enforce guarantees.
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