Lars Windhorst hit with €150mn freezing order
German financier is trying to fend off litigation from a number of aggrieved creditors
Lars Windhorst has been hit with a €150mn freezing order by London’s High Court, raising the legal jeopardy facing the German financier who is trying to fend off litigation from a number of aggrieved creditors.
A High Court judge made a “freezing injunction” against Windhorst this week after an application by Norwegian shipping magnate Kristian Siem and his companies, which are involved in long-running litigation against the financier over amounts related to a series of bond transactions they claim Windhorst has failed to pay.
The court order states that Windhorst “must not” remove assets from England and Wales “up to the value of €150mn” or “in any way dispose of, deal with or diminish the value of any of his assets whether they are in or outside England and Wales up to the same value”.
It also states that if Windhorst disobeys the order he “may be held to be in contempt of court and may be imprisoned, fined or have . . . assets seized”. The document states that there will be a “further hearing in respect of this order” later this month.
A spokesman for Windhorst and his Tennor Group of companies said: “This has no effect or consequences on the businesses of our group which in most areas continue to perform strongly, and we remain committed and very confident to repay all our creditors in the coming months as a result of that”.
Representatives of Siem did not respond to a request for comment.
A judge last month found Windhorst in contempt of court for failing to appear at a previous enforcement hearing in a separate case brought by investment firms linked to Monaco-based cruise magnate Manfredi Lefebvre d’Ovidio. The judge acknowledged, however, that the financier had provided a “sincere” apology to the court.
Windhorst last week testified under oath in the High Court about his assets and financial arrangements, in a hearing on the Lefebvre d’Ovidio case.
During this hearing, Windhorst said it was “complicated” to give an estimate of his net worth and “difficult” to answer whether he was “balance sheet solvent”, denying that he was living a “billionaire lifestyle” while large debts to creditors remain outstanding.
Several of the assets that Windhorst discussed during that hearing are listed in the freezing order Siem obtained this week, including a mansion in Beverly Hills, a small yacht purchased for €2.2mn and a watch collection valued at €600,000.
Legal representatives of Siem’s business were present in the courtroom for last week observing proceedings.
In a previous hearing in Siem’s case last year, a judge warned Windhorst’s lawyer that he risked contempt of court in that case too and remarked that the financier was “living on borrowed time”.
Windhorst’s largest known creditor — H2O Asset Management — has not taken legal action against him, instead negotiating a series of repayment plans over debts in excess of €1bn.
Windhorst told the court last week that he had provided a “personal guarantee” to H2O Asset Management for an “initial nominal amount” of liabilities of around €2.5bn.