Dissolving a company with an outstanding bank loan with director guarantee

Dissolving a company with an outstanding bank...

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I have a client who bought a franchise which didn't get going and is left with a franchise they can't sell, CT losses and now in other employment themselves.  The only creditor is the bank with a loan and they want to dissolve the company.  The bank took a directors guarantee for the loan which they have effectively been paying personally for the last few months albeit through the company.  They have spoken to the bank who say they cannot dissolve the company as the loan is in the Co name.  Has anyone had experience of this before - fortunately I haven't so am looking for any info.

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By occca
07th May 2010 20:19

Bank Loan

I have come across this before and I can understand the bank not closing the company with that sat there.

The director will need to pay back the loan before the company can be dissolved.  Has he asked the bank if they will let him take out a personal loan to pay off the company loan?

 

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By User deleted
08th May 2010 10:09

Not sure exactly what they've asked but they said the bank were very unhelpful.  It's a large loan and they are not trying to get out of it, just worry about having the company hanging over them with filing even abbreviated accounts - obviously don't want to incur more costs.  It's a shame the big banks don't just suggest this to people who are in trouble but doing their best to repay them.

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