Expert Witness

Case: Contractor Vs Parent Company
The contractor had carried out a management buy out from their parent company. However, a number of historical contracts had parent company guarantees (PCGs) in place with associated risk carried by the contractor.

Soon after the buy out, the overseas owners of the parent company decided to liquidate the assets of its UK subsidiary thus forfeiting its guarantee provisions to the contractor.

The respective parties disagreed on the value of such guarantees and took the matter to the Court of Chancery. We were appointed by the contractor as an expert witness to advise the Court on the value and significance of the PCGs.

We produced a report and worked closely with the parent company’s expert to produce a joint report for the Court.  This resulted in a financial settlement.

Lesson – What is the value and relationship of parent company guarantees??