Q&As

Can a creditor who has a claim against an insolvent subsidiary rely on the guarantee provided to the creditor from the parent company?

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Published on LexisPSL on 05/01/2017

The following Banking & Finance Q&A provides comprehensive and up to date legal information covering:

  • Can a creditor who has a claim against an insolvent subsidiary rely on the guarantee provided to the creditor from the parent company?
  • Claim against the insolvent debtor
  • Claim against the guarantor

Can a creditor who has a claim against an insolvent subsidiary rely on the guarantee provided to the creditor from the parent company?

An insolvency process over the debtor will not, on the face of it, affect the creditor's rights against the guarantor. If the debtor does enter into an insolvency process, the creditor will have two options available to obtain a recovery of sums due, both of which can be pursued at the same time, claiming against the insolvent debtor and/or the

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