An interesting story has come out of the Olympic showjumping, with the dual silver medal winning 10 year old Belgian stallion named London, being seized as part of ongoing bankruptcy proceedings, leaving his German rider Gerco Schroeder horseless.
Mr Schroeder is now faced with the uncertainty of whether he will be able to continue to ride the talented stallion or if he will have to find himself a new backer and a new mount.
Other horses owned by the European real estate company Stal Eurocommerce, the company director Mr Ger Visser and his son have also been seized in an attempt to secure company assets until such time as the financial issues of the company and the exact ownership of the horses can be determined.
This is a timely reminder for all owners and riders regarding the classification of their 'equine capital'. Horses, tack, floats and all other equipment used in the pursuit of the various equine sports are assets and will be treated as such by administrators, receivers, liquidators and trustees. Even a paddock hack and a second hand saddle will sell for a price on the open market and may be considered an asset.
This becomes especially pertinent if, for example, a member of your racing syndicate becomes bankrupt. Their share will become the property of the respective trustee in bankruptcy who will attempt to sell the asset. This means that you may have no say regarding who the trustee sells to and therefore who can buy into your syndicate.
As such, you need to ensure that your equine assets are properly protected so that you don't let the next Black Caviar fall into the hands of administrators or find yourself competing at Olympic level without a horse!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Madgwicks is a member of Meritas, one of the world's largest law firm alliances.
