The case concerned a multi-million financial obligation owed to a bank and a real risk that our client would lose the property securing the debt.
Our client’s total obligation to the bank amounted to approximately GEL 3.5 million, with a significant portion — nearly half — consisting of accrued interest and penalties. At a certain point, the client was no longer able to service the debt under the existing terms, and procedures were initiated that could have resulted in the secured property being transferred into the bank’s ownership.
By the time the client approached our firm, there was a real and immediate risk of losing the property. Our primary objective was therefore to halt the ongoing procedures and create a legal framework that would allow the client to protect his interests and regain a meaningful negotiating position with the bank.
To protect the client’s interests, we applied to the court for appropriate interim measures. As a result of the legal action taken, the ongoing procedures were suspended, restricting the bank’s ability to transfer the disputed property into its ownership.
The suspension substantially changed the parties’ positions and allowed negotiations with the bank to continue without the immediate threat of the client losing the property.
As a result of the negotiations, the parties reached a settlement on terms acceptable to the client. The amount and terms of repayment were agreed in a manner that protected the client’s financial interests, while the most important outcome was that the client retained ownership of the property.
Timely legal intervention was crucial to the successful resolution of the case. Suspending the ongoing procedures through the court made it possible to protect the property, create meaningful room for negotiation, and ultimately resolve a multi-million banking dispute on terms favourable to the client.
