Security for costs
Cerberus has set up Promontoria for the purpose of disposing of customers' assets.
Promontoria operates numerous "shell" companies registered in Ireland and have no registered assets. A "shell" company is a non-trading company used as a vehicle for various financial manoeuvres.
If a customer is pursued by one of these Promontoria companies via the courts, the customer is entitled to request that the court forces Promontoria to provide security for costs. This is because :-
a) Promontoria is a limited company and
b) as Promontoria has no assets, it may not be able to pay the customers' costs in the event of failure
c) if your property is located in the UK, any costs order awarded in your favour would need to be enforced in a foreign country incurring additional expense and requiring the approval of a foreign court.
The court decides whether to force Promontoria to provide security for costs.
In one customer's case, his costs are estimated at £600,000.