A Saudi prince has breached a loan agreement for financing a luxury yacht. A London court has ruled in favor of Credit Suisse.
Credit Suisse won a $41 million lawsuit against a member of the Saudi royal family over a loan to refinance a superyacht. The London High Court ruled that there was no viable defense to the bank's claim.
The Saudi prince is obliged to pay the debt of his company, Burgundy Sea, to Credit Suisse, the High Court in London ruled.
Loan to Refinance a Luxury Yacht
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 Wednesday.
The price and Burgundy, a special-purpose vehicle owned by him, were sued by Credit Suisse in 2021 over a 48 million euro ($52.5 million) loan to refinance the luxury yacht Sarafsa.
Taken Off the Market
The 82-meter yacht-which has a movie theater, gym, and five guest decks was put up for sale by luxury yacht broker Burgess Yachts for 65 million euros in October last year
A Burgess Yachts spokesman told Reuters the Sarafsa, which arrived in the Maltese port of Valletta on April 1, according to data from Vesselfinder, was taken off the market last week.
Settlement of All Debts
In September 2021, Credit Suisse demanded 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.
He and Burgundy admitted that only interest of 13,500 euros had been paid to Credit Suisse. However, according to the ruling, they denied that interest was due or that they had violated the terms of the loan agreement.
The judge said they «have no real prospect of successfully defending (Credit Suisse's) claims,» according to the report.
