Hotel Portfolio owned a number of London hotels which had the potential to be redeveloped into luxury residences. The company was in financial trouble, and in December 2004 its creditors authorised its director, Mr Andrew Ruhan, to accept any bid for the hotels above £125 million. At trial, that was found to be ‘consistent with an objectively reasonable market valuation of the hotels (with and without planning permission) at that time’ ([2022] EWHC 383 (Comm), at [55]). In March 2005, a company known as Cambulo Madeira made a successful bid for the hotels. The sole shareholder of Cambulo Madeira was Euro Estates, a company associated with Mr Anthony Stevens. Thereafter, the hotels were redeveloped or otherwise on-sold at a profit. The returns via Cambulo Madeira to Euro Estates were then applied by Mr Stevens towards Mr Ruhan’s other development projects …
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James McComish, Remedies for Dishonest Assistance: Heartbreak Hotel, Cambridge Law Journal, volume 83, issue 1, March 2024, pp 21-26. Published online by Cambridge University Press: 3 April 2024.
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