January 2024 – Suspension of enforcement of a 427.000,00€ Payment Order

Pursuant to decision number 93/2024 from the Insurance Court of Athens, the enforcement of a €427,000.00 Payment Order is suspended. The court judged that the guarantee of the party under the Payment Order has likely been rendered null.

In 2009, the Borrower company secured a credit agreement with a bank, guaranteed by our principal. In 2012, a regulation agreement was signed to address an accumulating debt, converting the mutual account balance into a fixed term loan. Our principal did not sign this agreement. In July 2023, the bank issued a Payment Order against our principal, claiming the 2012 agreement settled the as of 2009 debt.

In our defense, we argued the guarantor’s liability ceased in 2012. The nature of the 2012 agreement differed significantly from that of the 2009 mutual account. In simpler terms, we argued that the Borrower obtained a new, different loan to settle the old one, which, however, our principal did not sign as guarantor, or in any other capacity. The court acknowledged our position, leading to the suspension of the Payment Order, despite our principal’s substantial assets presenting difficulties in establishing the necessary procedural risk element.