TRIAL OF PRELIMINARY ISSUE – GUARANTOR’S LIABILITY – LEAVE TO AMEND
The Plaintiff in this action was a Delaware corporation based in New York State which provides business finance. The Defendant was a businessman resident in Bermuda. The Plaintiff sought US$3,874,441.30 together with, inter alia, contractual interest and costs from the Defendant under a Guarantee and Indemnity Agreement dated 28 September 2009 (“the Guarantee”). The principal debtor whose debts were guaranteed by the Defendant is a Canadian company, Repechage Investments Limited (“RIL”). The primary obligations were owed to the Plaintiff by RIL as assignee of pre-existing liabilities under a Credit Agreement owed by two of RIL’s subsidiaries. RIL filed a voluntary bankruptcy petition in the United States Bankruptcy Court for the District of Massachusetts (Eastern Division), which the Defendant signed as its President and Chief Executive Officer.