DECEMBER 10, 2002
The court action begins for Arrows
Morgan Grenfell's case against Arrows and Tom Walkinshaw began in the High Court in London on Tuesday to decide whether or not a financial guarantee made by the team is still valid despite a restructuring of the company which was supposedly agreed in July 2001. The claim is that Arrows and Walkinshaw diluted the bank's investment with a restructuring which was not agreed by the bank.
Morgan Grenfell won a High Court injunction last May to prevent the restructuring and Arrows and Walkinshaw failed to have the injunction lifted in July and were heavily criticised by the judge in the case.
The outcome of the case, expected in around eight days, will almost certainly decide whether or not the Arrows company will go into liquidation.
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