- Mortgagee’s duty to sell security property at proper price (Close Brothers Ltd v AIS (Marine) 2 Ltd and another)
- What are the practical implications of the judgment?
- What was the background?
- What did the court decide?
- What lessons can be learned from the judgment?
Restructuring & Insolvency analysis: Stephen Innes, barrister of 4 New Square, examines an Admiralty Court decision that the claimant mortgagee bank’s sale of the first defendant mortgagor’s vessel, of which the claimant had taken possession when the first defendant defaulted on repayment of the loan, had not been at an undervalue and so the claimant was entitled to recover the shortfall between the amount the first defendant owed under the mortgage deed and the net proceeds from the sale of the vessel.
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