MP defends hunger strike protest businessman who may lose home

The case of a businessman on hunger strike shows how vulnerable UK businesses are to “abusive treatment” by lenders and vulture funds, the Commons has heard.

SNP MP Angela Crawley raised the case of John Guidi, who is protesting at his treatment by Clydesdale Bank and Cerberus Capital Management.

She urged the UK Government to enable an independent financial tribunal to resolve such disputes in a fairer way.

Treasury minister John Glen said he would meet Ms Crawley to discuss her concerns.

He also told MPs that he understood enforcement action against Mr Guidi is on hold and both Clydesdale and Cerberus have offered to meet him.

Ms Crawley told the Commons how Mr Guidi had built a business in the west of Scotland to a portfolio of almost 150 properties with backing from the Clydesdale Bank.

She explained that in 2002, Clydesdale Bank changed the structure of his loans – introducing him to the tailored business loan.

“Later in 2014, Mr Guidi informs me that Clydesdale Bank sold its tailored business loans to Cerberus Capital Management – an American private equity business,” she said.

“He says they aggressively pursued the debt and put his company into receivership. He has been made bankrupt and the company is pursuing his family home.

“This tragic case brings to attention the vulnerability of UK businesses to the abusive treatment by lenders and vulture funds, and the inadequacy of the current regulation in preventing it.”