Mother of Barclay heir pursued for £19m debt

The matriarch of the Barclay family is being pursued for debts of almost £19m owed by her son Alistair.Deutsche Bank Luxembourg is seeking permission from the High Court to recover losses from Lady Reyna Barclay after Alistair Barclay failed to repay his debts.Details of the bank’s pursuit have emerged after the private bank filed a claim against Alistair, 36, earlier this month.Alistair is the son of Sir David Barclay, the former joint owner of The Telegraph and Lady Reyna.Sir David, who died in 2021, and his twin brother, Sir Frederick Barclay, and their children built a multibillion-pound business empire that once included The Telegraph, online retailer Very and parcel delivery firm Yodel.However, in recent years, the empire has imploded under heavy debts, triggering a string of legal battles involving the family.High Court filings seen by The Telegraph show that Alistair, the youngest of Sir David’s four sons and a former motor racing driver, owes Deutsche Bank Luxembourg £18.7m after failing to repay a loan struck in 2022.The German lender is suing Alistair and has targeted Vauvert Administration LBG, a Guernsey company listed as the trustee to two offshore trusts in his name.However, Deutsche Bank is also pursuing Lady Reyna after Alistair said neither he nor his trusts can repay his debts, according to court papers.‘Lady Barclay’s promise’Lady Reyna allegedly agreed to serve as a guarantor to Alistair’s trusts. In its evidence to the court, Deutsche has referred to “Lady Barclay’s promise” to ensure Alistair’s trusts can “meet its obligations and liabilities as they fall due”.Court filings from Deutsche state that “Lady Barclay is independently wealthy and thus capable of fulfilling her promise” to cover Alistair’s debts.Lady Reyna’s alleged guarantee is said to expire in late March, and Deutsche Bank is seeking an emergency trial as it races to recoup its losses. Recovering the debts from Alistair’s mother is “realistically, the bank’s only prospect of substantial recovery”, Deutsche said in its filing.“Since Mr Barclay’s default in 2023, the bank has engaged in lengthy efforts to arrive at a resolution,” it said. “Repeated attempts by the Bank to find a resolution have not succeeded.”In his defence, Alistair has rejected claims that his mother’s “promise” was binding.His lawyers told the court: “It is unexplained how Lady Barclay could conceivably be liable on her so-called ‘promise’. Parties cannot sue on a bare ‘promise’.“The suggestion that the bank can take steps to enforce this ‘promise’ is a non-starter.”Lawyers also claimed Deutsche Bank was attempting to use its case against Mr Barclay “as a hook to come after his mother”.Alistair is seeking to move the case to the County Court, which Deutsche Bank said would lead to unnecessary delays.Deutsche Bank has instructed Pinsent Masons. Alistair has hired Clarion Solicitors.Deutsche Bank Luxembourg is the second private bank to initiate court proceedings against Alistair in two years.In 2024, Investec’s private bank issued a bankruptcy petition over an allegedly overdue £1m loan, which was eventually settled out of court.The lender hired investigators to track down Alistair, claiming he had been “actively avoiding” service of its claim.He was found living in a Monaco seafront tower block called Le Roccabella with his mother. Investec claimed Mr Barclay had moved to the Mediterranean microstate after selling a grand townhouse in Chester Square, Belgravia.Alistair’s half-brothers, Aidan and Howard, are facing their own legal battles after HSBC issued a bankruptcy petition against them.This relates to the collapse of Yodel and its related companies, which owed the bank £140m. Aidan and Howard are alleged to have given personal guarantees on the loans.Barclays’ financial troubles began in June 2023, when Lloyds Bank Group seized control of The Telegraph due to £1.2bn debt.They repaid that debt in full after agreeing to hand control of The Telegraph to RedBird IMI, a vehicle majority-funded by the United Arab Emirates. The move was ultimately derailed by a cross-party outcry over press freedom.