The bank has applied to the High Court seeking to pursue Lady Reyna Barclay, arguing that she agreed to ensure loans linked to offshore trusts associated with her son would be repaid after he failed to meet his obligations under a 2022 loan agreement.
Alistair Barclay, 36, is the youngest son of Sir David Barclay, the late billionaire businessman who, alongside his twin brother Sir Frederick Barclay, built one of Britain’s most influential privately owned business empires. At its peak, the Barclay Group controlled assets including the Telegraph newspapers, online retailer Very, and parcel delivery firm Yodel.
That empire has since unravelled under the strain of heavy borrowing, sparking years of legal battles between different branches of the Barclay family. The latest dispute centres on an £18.7 million loan that Deutsche Bank says remains unpaid.
A former motor racing driver, Alistair Barclay is being sued alongside Vauvert Administration LBG, a Guernsey-based company acting as trustee for two offshore trusts linked to him. According to court documents, Barclay told the bank that neither he nor the trusts had the financial means to repay the loan.
As a result, Deutsche Bank has turned its attention to Lady Barclay. In evidence submitted to the court, the bank said she had agreed to ensure the trusts could meet their liabilities as they fell due.
Court filings state that “Lady Barclay is independently wealthy and thus capable of fulfilling her promise” to cover the debts. The bank has requested an expedited hearing, warning that the alleged guarantee is due to expire later this month. Without swift legal action, Deutsche Bank said pursuing Lady Barclay would be its only realistic chance of recovering a significant portion of the money.
Alistair Barclay has denied that his mother’s alleged assurance was legally binding. His lawyers argued that the bank has no legal basis to enforce what they described as a non-binding statement.
“It is unexplained how Lady Barclay could conceivably be liable on her so-called ‘promise’,” his legal team told the court. “Parties cannot sue on a bare ‘promise’. The suggestion that the bank can take steps to enforce this is a non-starter.”
His lawyers also accused Deutsche Bank of using its claim against him as a “hook” to pursue his mother.
Deutsche Bank is represented by Pinsent Masons, while Alistair Barclay is advised by Clarion Solicitors. The case was first reported by The Telegraph.
Both parties were approached for comment. Deutsche Bank declined to comment.
