Credit Suisse beats Saudi prince in multi-million euro lawsuit.A London court has ruled in favor of Credit Suisse, awarding them a $41 million victory against a member of the Saudi royal family over a loan agreement breach for financing a luxury yacht.
The High Court ruled that there was no viable defense to the bank's claim and the prince is now obliged to pay the debt of his company, Burgundy Sea, to Credit Suisse.
The loan, worth €48 million ($52.5 million), was granted to refinance the luxury yacht Sarafsa, an 82-meter vessel with a movie theater, gym, and five guest decks, which was put up for sale by luxury yacht broker Burgess Yachts for €65 million last October.
A lion statue outside the Credit Suisse Building
In September 2021, Credit Suisse demanded that Burgundy settle all debts due to alleged breaches of the loan agreement and asked the prince to settle the debts under a personal guarantee of Burgundy's obligations.
However, the prince and Burgundy admitted that only the interest of €13,500 had been paid to Credit Suisse. According to the ruling, they denied that interest was due or that they had violated the terms of the loan agreement.
The London judge ruled in favor of Credit Suisse without a trial at a hearing last month, at which the prince and Burgundy were not represented, and published his verdict on Wednesday, according to a Reuters report.
The ruling follows a string of legal battles for Credit Suisse, including the recent decision to pay out $4.7 billion to investors over the collapse of Archegos Capital Management. However, the bank appears to be emerging victorious in this particular case against the Saudi prince.
According to a Credit Suisse spokesperson, the bank is pleased with the outcome of the case and is committed to pursuing claims against those who fail to meet their obligations under loan agreements.
"We are pleased with the outcome of this case and will continue to pursue all available legal avenues to ensure that our clients are protected and our obligations under loan agreements are met," the spokesperson said.
This ruling highlights the importance of honoring loan agreements and the potential consequences of failing to do so. It also serves as a reminder to financial institutions to thoroughly vet their clients and ensure that they are capable of meeting their financial obligations.
In conclusion, Credit Suisse has emerged victorious in a $41 million lawsuit against a Saudi prince over a loan to refinance a superyacht. The London High Court ruled that there was no viable defense to the bank's claim, obliging the prince to pay the debt of his company, Burgundy Sea, to Credit Suisse.
This ruling serves as a reminder to financial institutions to thoroughly vet their clients and ensure that they are capable of meeting their financial obligations.