Invezz.com - Amanda Staveley, co-owner of Newcastle United football club and a prominent British financier, has been ordered by the London High Court to pay nearly £3.5 million to Greek shipping tycoon Victor Restis.
The ruling, delivered on Monday, marks the end of a legal battle over a historic debt that dates back more than a decade.
The origins of the dispute
The case centers on a loan of £10 million made to Staveley’s businesses in 2008 by Restis. Over the years, the debt accumulated significant interest, ballooning the total amount owed to over £36 million.
Despite this, Restis’s legal team agreed to pursue only the principal sum of £3.47 million, foregoing the approximately £31 million in interest that had accrued at a staggering rate of £505,000 per day.
Staveley, who owns a 10% stake in Newcastle United alongside her husband, contested the claim, arguing that she was not personally liable for the debt.
She also claimed that the dispute should have been resolved through arbitration rather than in court and alleged that Restis had exerted illegitimate pressure on her to settle the debt.
These arguments were ultimately rejected by Judge Daniel Schaffer.
The court’s ruling
In his ruling, Judge Schaffer found that Staveley was indeed personally liable for the debt and dismissed her claims of duress and misrepresentation.
The judge determined that Restis had acted within his rights to seek repayment of the loan, despite the significant financial pressures faced by Staveley.
“There were clearly commercial pressures on Ms. Staveley, but Mr. Restis was perfectly entitled to press for payment,” Schaffer stated in his ruling.
He also rejected the notion that Restis had threatened Staveley with physical violence, an allegation that Staveley’s legal team had raised during the proceedings.
Restis’s lawyers pointed out that Staveley had invited Restis to a Newcastle United match after the alleged threats, undermining the credibility of her claims.
The court’s decision allows Restis to present a bankruptcy petition against Staveley if the debt is not settled within 21 days, setting an April 22 deadline for action. If Staveley fails to pay the £3.5 million, she could face bankruptcy proceedings.
Background on the parties involved
Amanda Staveley is a well-known figure in the financial world, having played a key role in securing a multi-billion-pound investment from Abu Dhabi for Barclays (LON:BARC) during the 2008 financial crisis.
Her firm, PCP Capital Partners, was instrumental in brokering the deal that helped stabilize the bank during a time of economic uncertainty.
More recently, PCP led a Saudi Arabian-backed consortium in the 2021 purchase of Newcastle United, a Premier League football club, further elevating Staveley’s profile.
Victor Restis, a Greek shipping magnate, has also been a significant figure in global business circles.
The dispute between the two arose from the loan made to Staveley’s businesses at the height of the financial crisis.
Restis had provided a witness statement in Staveley’s unsuccessful lawsuit against Barclays, adding a layer of complexity to the legal proceedings.
PCP Capital Partners, the firm at the center of the dispute, has since been renamed Apollo Belvedere Services.
The case has drawn significant attention due to the high-profile nature of the individuals involved and the large sums of money at stake.
Implications of the ruling
The court’s decision represents a significant financial setback for Staveley, who now faces the possibility of bankruptcy if the debt is not paid.
The ruling also highlights the risks associated with high-stakes financial dealings and the potential long-term consequences of unresolved debts.
As the April 22 deadline approaches, the focus will be on whether Staveley can secure the funds necessary to settle the debt and avoid further legal and financial complications.
The outcome of this case could have far-reaching implications for Staveley’s business interests and her role within Newcastle United.
This article first appeared on Invezz.com
